Insurance Industry

Mr THOMPSON (Herbert) (10:06): The cost of insurance in Townsville has spiralled out of control, placing an unbearable burden on families in the electorate of Herbert. Residents are grappling with premiums that have tripled or quadrupled, pushing many into despair. One resident told me: 'Last year my insurance was $2,800; now, it's increased to over $30,000 annually. This is a ridiculous increase. How can it be allowed?' Another told me, 'Insurers are making living in this beautiful region a dreadful, unpredictable nightmare,' with their strata insurance rising almost 400 per cent in the last couple of years. No family should be forced to choose between putting food on the table and paying these outrageous insurance bills.

It's a disgrace that insurance companies are hiking up premiums, often in low flood-risk areas, while the Albanese Labor government fails to hold these insurers to account. The reinsurance pool launched in 2022 was meant to make insurance affordable in areas like Townsville. The ACCC's report last week shows that it's provided minimal relief and that insurance remains out of reach for far too many in the regions. Neville, a Garbutt homeowner, told me, 'I just want to take insurance out like most other people,' but he faces quotes of up to $14,000. Shockingly, the ACCC report shows that premiums have actually risen for those at low to no flood risk. As one constituent said, 'I've never been flooded, and I'm not in a flood zone, yet insurance companies have listed me down as a high flood risk. We have no option but to sell and move.'

It's clear the scheme is failing to deliver on its promise. The government's legislative review into the cyclone reinsurance pool is ongoing, and it must include direct feedback from those people who are being let down. That's why I wrote to the ARPC chief executive, Christopher Wallace, and Labor's assistant treasurer, Daniel Mulino, demanding urgent action. My letter called for mandatory compliance to ensure insurers pass on cost savings, a real-time data dashboard showing savings by insurers, and accountability to the consumer. Expecting locals to navigate a 94-page report is absolutely absurd. I also invited the ARPC board to our community to hold a forum to hear directly from the residents. The ARPC has responded, promising to consider my letter and acknowledging my invitation to visit, but we need accountability and action now. Townsville deserves fair, affordable insurance, and I won't stop fighting until we get it.