Suncorp warns against Queensland cyclone pool plan
- molly510
- Sep 9, 2019
- 1 min read
Creating a government-backed cyclone insurance pool for northern Queensland could worsen problems at the expense of taxpayers, Suncorp says in a submission to the Australian Competition and Consumer Commission (ACCC).
The insurer says intervention through a pool or mutual arrangement has previously been examined and rejected by government reviews. Building more resilient communities is the most sustainable answer to regional issues, the insurer says.
“Intervention will not only expose the taxpayer to significant ongoing financial risk, it also risks diluting the insurance price signal,” Insurance CEO Gary Dransfield says. “It [would result in] creating inefficiencies in the market, delivering poor outcomes for consumers, and most importantly does nothing to protect homes and possessions from natural disasters.”
The ACCC Northern Australia Insurance Inquiry called for submissions by Friday on measures to improve insurance affordability and availability in the region.
Overseas examples of schemes to improve cover include the US flood insurance program and the UK’s Flood Re, launched in 2016.
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