Rising Insurance Costs in NT Challenge Cyclone Reinsurance Efforts
Rising Insurance Costs in NT Challenge Cyclone Reinsurance Efforts
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Homeowners in the Northern Territory are experiencing significant increases in insurance premiums, despite the federal government's establishment of a cyclone reinsurance pool in 2022 aimed at reducing costs in cyclone-prone areas.
The Australian Competition and Consumer Commission (ACCC) reported that the median home and contents premium in the NT increased by 11% during 2023. For strata insurance policies, the median premium rose by 7% in the same period. These increases have occurred even though the cyclone reinsurance pool was intended to lower premiums by reducing the cost of reinsurance for insurers. [Source: ABC News]
Consumer advocacy groups suggest that the funding structure of the reinsurance pool may need to be re-evaluated to ensure that the intended savings are effectively passed on to policyholders. They argue that while the pool covers cyclone risks nationwide, the burden of funding it disproportionately affects residents in northern Australia, who continue to face higher premiums.
As the insurance industry and government agencies assess the impact of the cyclone reinsurance pool, it is crucial to address these disparities to ensure that homeowners in cyclone-prone regions receive the financial relief that the initiative was designed to provide.
Published:Wednesday, 4th Feb 2026 Source: Paige Estritori
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Loss of Use: Insurance coverage that pays for the additional living expenses if your home is uninhabitable due to a covered loss.
