The Government reinsurance pool will cover the cyclone and associated flood risk in home, strata and small business insurance policies.
Importantly, the Government will also provide $40 million for the North Queensland Strata Title Resilience Pilot Program to subsidise the cost of cyclone risk mitigation works for strata properties in north Queensland.
IAG Managing Director and CEO Nick Hawkins said today’s announcements by the Commonwealth Government are important measures to help protect people, businesses and communities at highest risk from natural disasters.
“We know we’re going to see more frequent and intense extreme weather events, particularly in northern Australia, so it’s critical that people, businesses and communities can access affordable insurance so they can get back on their feet as quickly as possible,” Mr Hawkins said.
The measures announced today by the Government, along with greater investment in mitigation, improved land-use planning and the strengthening of building codes, will help create stronger, more resilient communities. This in turn will help increase the availability of insurance in high-risk areas, improve affordability and ultimately, help save lives and property when disasters strike.”
IAG looks forward to working with the Government and insurance industry on the design and implementation of the reinsurance pool which will be in place from 1 July 2022.