The Opposition says the Morrison Government must implement recommendations from the Australian Competition and Consumer Commission's final report into the Northern Australia insurance crisis without further delay,
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Labor said the ACCC handed down its first interim report of the Northern Australia insurance inquiry over two years ago with 15 recommendations but nothing was done and also failed to act on the second interim report with 28 recommendations published in December 2019.
Now the final report has been published with 38 recommendations and the government is yet to respond with the Financial Rights Legal Centre also urging an immediate implementation of recommendations.
The ACCC said home, contents and strata insurance premiums are considerable higher in northern Australia than the rest of the country and have increased at a faster rate over the past decade.
The report found many people in the north are going without insurance due to rising costs leaving them vulnerable to the financial impact of cyclones and floods.
One of the recommendations calls on the government to work with insurers to identify mitigation projects like flood levees, but Labor said it has failed to spend one cent of the $4 billion Emergency Response Fund announced 20 months ago.
Cairns-based Labor Senator Nita Green said the Morrison Government had failed to develop a coherent plan to fix the insurance crisis over the past three years.
"The Morrison Government needs to stop treating North Queenslanders with contempt and urgently release their response to this report," Senator Green said.
"The time for inaction and excuses is over - the Morrison Government needs to come clean and explain to North Queenslanders whether they will keep their promise to fix this crisis."
ACCC deputy chair Delia Rickard said there were genuine reasons why premiums were more expensive in northern Australia as the risk of extreme weather is higher, and it can be costly for insurers to service the region.
"However, different insurers can quote vastly different premiums for the same property," she said.
"While many consumers could save by switching, it is harder than it should be for consumers to shop around."
The ACCC recommends governments use direct subsidies in a targeted way to relieve severe financial pressure faced by households in specific areas.
Insurance Council of Australia CEO Andrew Hall agreed insurance in the north could be costly with its high level of risk.
"We are encouraged by the findings within the report and look forward to working with government and industry to address affordability and availability issues of insurance in northern Australia," Mr Hall said.
"The burden of stamp duties is falling more heavily on consumers exposed to greater natural disasters and other risks and support the idea of reforms to remove or re-base state and territory stamp duties on home, contents, and strata insurance products. This has the potential to immediately relieve pricing pressure for all consumers in northern Australia."
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