Media Release

26 October 2017: KAP Federal Leader and Member for Kennedy, Hon Bob Katter MP, has today used Parliament Question Time to push the government to finally act on North Queensland’s skyrocketing insurance premiums, instead of just more ‘reports and looking into’. This comes as the ACCC states insurance premiums in North Australia have increased by 80% between 2008-13.

Mr Katter asked the Minister for Financial Services,

“In May 2014, I raised the issue of skyrocketing North Qld insurance premiums.

ACCC figures show Northern premiums rising 80% in 5 years.

With 400 per cent increases Nth Qld is the lead contributor.

With pre-cyclone Tracy old building code buildings all gone, this discrimination cannot “now” be actuarially justified.

Proof: 2006 Cyclone Larry damage $1.5b, 2011 Yasi only $800m.

When will the Minister establish an authority to underwrite ‘exceptional circumstances’, providing the platform for yarding profiteering insurers?”

Mr Katter gave two examples of premium increases.

“This issue does not just pertain to residents in coastal areas of North Queensland. Mr Duncan Fysh of Julia Creek told the Member for Kennedy of his rising premiums from $2300 in 1996 to $22,000 in 2013 (a 1000 percent increase in less than a decade).

“Julia Creek is not noted for floods, cyclones or tidal surges,” Mr Katter said.

Insurance broker Shannon Siebel from Mission Beach told Mr Katter the costs for insurance premiums in the area had risen from $792 in 2007 to $3714 in 2014.

In 2014, the Government released yet another discussion paper on insurance premiums. Now the Government has the ACCC undertaking yet another inquiry into insurance in Northern Australia.

“This is a futile waste of taxpayers’ money and an insult to their intelligence – another excuse for the Government to remain idle on actually making a decision.

"As Winston Churchill stated, “it is an indefinite postponement of any decision or a decisive decision for indefinite postponement.

“We need the Government to establish an authority to underwrite ‘exceptional circumstances’ and ensure insurers are not profiteering off North Queenslanders,” Mr Katter said.

##ENDS##