The Taskforce is charged with exploring the feasibility of options that use the Commonwealth balance sheet to reduce home, contents and strata insurance premiums in those regions of Northern Australia that are experiencing insurance affordability concerns due to cyclone risk.
The Taskforce will:
- Establish which regions in Northern Australia are experiencing acute insurance affordability concerns due to cyclone risk;
- Outline options to reduce the cost of home, contents and strata insurance that stems from cyclone risk in these regions, including a mutual cyclone insurer and a cyclone reinsurance pool as well as other options that are put forward during consultation;
- For each option, undertake a thorough evaluation of:
- the potential reduction in consumer premiums;
- the likely cost and risks associated with using the Commonwealth balance sheet to lower the cost of insurance to consumers;
- the potential effect on the operation of the insurance and reinsurance markets in Northern Australia, particular the likely effects on competition; and
- how the role of the Government can be gradually reduced over time.
In conducting the review, the Taskforce will draw on a Reference Panel of stakeholder representatives and consult extensively, including with industry experts in insurance and reinsurance.
The Taskforce will provide an interim report providing policy options for consultation before providing recommended policies in a final report to the Government by November 2015.