CONSTITUENCY STATEMENTS
Mr THOMPSON (Herbert) (10:37): When families are forced to choose between putting food on the table, keeping the lights on and paying for insurance, it is clear the reinsurance pool is failing the very people it was designed for. A damning report was released this week by the Insurance Council of Australia, and it should be a wake-up call for this Labor government.
It revealed that 240,000 homes across Australia are at severe risk of flooding, yet only two in 10 of these homes are insured. This data confirms what we've been seeing on the ground. In Townsville, which was hammered by the North Queensland floods in February, locals are being priced out of the market.
After the floods, Neville from Garbutt was hit with a $28,000 insurance quote despite no prior flooding during his decade-long residence. James from Condon, whose home isn't in a council designated flood zone, was labelled 'at risk' by his insurer, forcing him to consider selling because the premiums are unaffordable on his TPI income. Bronwyn from Hermit Park has been paying insurance for 35 years but saw her renewals skyrocket from $3,000 annually to $30,000.
How can anyone afford these prices? No family should be forced to choose between food and insurance. This is unacceptable, and that's why the Australian Reinsurance Pool Corporation was established—to hold insurers to account—yet this Labor government refuses to use it effectively.
Labor's legislative review into the ARPC is apparently still ongoing, but, months ago, I wrote to Labor's Assistant Treasurer, Minister Mulino, and the ARPC, asking them to visit Townsville to hear from locals, because direct feedback from those being let down is essential in the review process. I received no response from the minister. I again wrote to the chair of the ARPC, and still no visit has occurred.
People in the regions are doing it tough, but it's clear that's not a priority for this Labor government. Now, insurance companies are getting away with price gouging or leaving residents without cover. It seems this Labor government couldn't care less.
The insurance sector needs accountability, and the ARPC requires urgent reform. I'm again calling on this Labor government to: legislate mandatory compliance to make insurers pass meaningful cost savings to consumers via the ARPC and not allow different insurer approaches; establish a real-time data dashboard on the ARPC website showing cost savings by each insurer; and produce clear, accessible consumer information on ARPC performance, not 90-page reports in fine print that no-one can understand.
I'm calling on Minister Mulino to bring the ARPC to Townsville, consult with the people he is supposed to serve and support the most honourable of residents. Instead of turning a blind eye, this government must act now to bring accountability to insurers so that no-one will be left unprotected or priced out of their own home.