NIBA responds to ACCC Cyclone Reinsurance Pool Insurance Monitoring Report
Media Release
The National Insurance Brokers Association (NIBA) welcomes the ACCCʼs Cyclone Reinsurance Pool Insurance Monitoring Report and is pleased to see that the pool is delivering savings for some of those most at risk from cyclone and related flooding events in northern Australia. However, we remain concerned that a significant number of households continue to see little or no relief in their premiums. It is particularly troubling to note reports that households assessed as having low or no cyclone risk are instead experiencing premium increases.
NIBA is disappointed that the report fails to address the impact of insurance-based taxes, which continue to undermine affordability. According to reports, the Queensland Government alone is expected to collect more than $2 billion in stamp duty from insurance premiums by the 2027–28 financial year, while nationally, more than $6 billion in GST was collected from insurance premiums in 2024. These taxes directly add to the cost pressures faced by policyholders.
The most effective and sustainable way to reduce premiums remains reducing the underlying risk by consumers. NIBA calls on State and Federal governments to prioritise and significantly increase investment in public and household-level mitigation works, which play a vital role in improving community resilience and lowering the cost of insurance over the long term.
Insurance brokers play a critical role in supporting households and businesses, particularly in high-risk regions. Brokers act on behalf of their clients to help them navigate complex markets, understand their risk, and secure cover that meets their needs. The higher use of brokers in northern Australia reflects the genuine difficulties many face in obtaining insurance protection in cyclone-prone areas. Brokers bring expertise, advocacy and practical solutions that are often essential when insurance options are limited or premiums are high.
NIBA remains committed to advocating for measures that address the root causes of affordability challenges and support the resilience of communities most exposed to extreme weather risk.