Media Release

KAP Federal Member for Kennedy Bob Katter today compared the Sydney storms to the Far North Qld cyclone season, amid reports that Sydney would not face rises in insurance premiums despite the damage bill for this week’s storms topping $500 million.

Mr Katter maintained today that both Sydney and Brisbane were just as disaster prone as Far North Qld and asked why the latter had been the only one to shoulder an average 300 percent increase in its insurance premiums in recent years.

“The hail storm in Sydney a few years back was at the time reportedly the worst financial insurance disaster in Australian history, with the Newcastle earthquake running not far behind.

“The recent hail storms in Brisbane reportedly saw a damage bill of over $300 million yet the insurance companies made an announcement there’d be no change in rates.

“The large proportion of Australia’s population is centered on the Sydney to Brisbane axis and they hold their own as far as weather disasters are concerned.

“So why is it only Far North Qld that is hit with exorbitant rises in insurance premiums?” Mr Katter asked.

This issue does not just pertain to residents in coastal areas of Far North Qld. Mr Duncan Fysh of Julia Creek told the Member for Kennedy of his premiums rising from $2,300 in 1996 to $22,000 in 2013 – a 1,000 percent increase in less than a decade.

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

Mr Katter pointed out that severe weather events would not have anywhere near the impact they had in the past as more rigid controls had been implemented in flood prone areas, but infinitely more importantly were the post Cyclone Tracey building codes.

“Very few houses built under the new codes have been affected by the last two cyclones in Far Nth Qld.

“Actuaries look backwards but in this case looking backwards gives you a very false formula.

“Because if you look backwards, all of the old houses have been destroyed and if you look forward none of the new houses will be destroyed,” Mr Katter said.

Mr Katter hit out at the Government for not doing more to protect North Queenslanders.

“The Government has done nothing about this, though the Member for Leichardt has obtained money for another discussion paper, which we have said time and time again is just an indefinite postponement of any decision.

“KAP has entered into discussions with a number of small companies and one of those has realised that an actuarial assessment should look forward, so it should be an infinitely more sophisticated but also fairer formula.

“We will also be asking the Government to move legislation, that we will draft, that the Government take some of the risk through a loading, though I emphasise we believe this will be no risk at all.

“I’d also point out that insurance premiums did not go up after Cyclone Yasi, they went up after the GFC.

“Someone had to be screwed as their investments had gone bad and we were the poor bunnies - turns out South Sydney Rugby League are not the only bunnies in Australia,” Mr Katter said.