ACCC to use $7.9m to monitor northern Australia insurers
Funding in the 2017 Federal Budget is set to be allocated to the Australian Competition and Consumer Commission to oversee insurance companies operating in Northern Australia.
The Government will provide $7.9 million over four years from 2017-18 to the ACCC to monitor and report on prices, costs and profits in the insurance market for home, contents and strata insurance in Northern Australia.
The funding comes as Northern Australia continues to wait for a response from the Federal Government to the Northern Australian Insurance Premiums Taskforce recommendations finalised in November 2015.
Recommendations included improved mitigation through education and research, greater recognition of mitigation from the insurance industry, increased scope for policyholders to assume more responsibility of risk and subsidised mitigation measures for low-income households.
The Government was due to respond almost one year ago.
Last month, WA Regional Development Minister Alannah MacTiernan said the report had so far been nothing more than a “production of shelf fillers”.
“If it is all too hard for the Turnbull Government, admit it and do not leave northern Australians hanging,” she said.
The report has drawn criticism from government and industry bodies in the North West over concerns of home and business owners not being taken into account and failing to address people in high-risk areas who don’t insure.
Insurance Council of Australia and Revenue and Financial Services Minister Kelly O’Dwyer failed to respond by time of print. Durack MHR Melissa Price’s office did not respond to a request for comment.