NIBA provides submission to Senate Economics Committee

NIBA has provided a submission to the Senate Economics Legislation Committee’s hearing on the Treasury Laws Amendment (Cyclone and Flood Damage Reinsurance Pool) Bill 2022.

Written on 9 March, 2022
Allyssa Hextell

NIBA has provided a submission to the Senate Economics Legislation Committee’s hearing on the Treasury Laws Amendment (Cyclone and Flood Damage Reinsurance Pool) Bill 2022.

The hearing, which took place yesterday afternoon, heard from speakers across the Strata and insurance industries as well as academics from Melbourne University and representatives from the Australian Competition & Consumer Commission (ACCC), Australian Prudential Regulation Authority (APRA) and Treasury.

While NIBA’s submission supported the Reinsurance Pool in principle it raised a number of areas that in NIBA’s view need to be addressed prior to the legislation being passed. These areas included the classification of aged and residential care properties as commercial properties, the 48-hour damage period, mitigation and long-term viability of the fund and the lack of policy mechanisms to encourage insurers to return to the Northern Australian Market.

NIBA’s concerns were shared by a number of other organisations including the Northern Australia Insurance Lobby and the Northern Territory Chamber of Commerce.

Following the hearing, the Committee will prepare a report for the Senate before parliament resumes at the end of the month.