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Highlights
- Greens propose ending stamp duty on home and car insurance to relieve cost burdens.
- Reinsurance pool expansion to cover all natural disasters, with fossil fuel companies contributing.
- New risk maps and insurance premium monitoring plan introduced.
As the frequency and intensity of natural disasters continue to grow, the Greens are pushing for a significant reform in the insurance sector, aiming to reduce the financial burden on Australians. The party's proposal, which will be officially unveiled by Greens climate spokesperson Mehreen Faruqi, seeks to end the stamp duty on home and car insurance premiums as part of a broader plan to combat the impacts of climate change.
One of the key components of this plan is to expand the reinsurance pool that currently covers cyclones, extending it to include all natural disasters. This move would aim to make insurance more affordable for Australians, especially in areas prone to extreme weather events. As part of the proposal, the Greens suggest that coal and gas companies contribute to the reinsurance pool and the creation of a Disaster Ready Fund.
According to costings provided by the Parliamentary Budget Office (PBO), removing stamp duty on insurance premiums could return over $4 billion to the pockets of Australians in the first year alone. However, the PBO notes that it was unable to quantify the full financial impact of the expanded reinsurance pool due to uncertainty around the frequency and severity of natural disasters. Furthermore, the PBO was unable to assess the varying risks across different regions or evaluate how this expansion would affect premiums for specific policies.
In addition to these initiatives, the Greens are calling for an extra $5 million to be allocated to the Australian Competition and Consumer Commission (ACCC) to establish an insurance premium pricing monitor. This would aim to provide greater transparency and ensure that premiums reflect the actual risk involved. Additionally, a further $10 million is earmarked for the creation of a publicly accessible risk map. This map would inform Australians of areas at high, moderate, or low risk of natural disasters.
The policy will be unveiled in Richmond, northern NSW, a seat that the Greens are targeting in upcoming elections. While the seat is currently held by Labor MP Justine Elliott, the Greens gained significant ground in the 2022 election, securing a nearly 5% swing in first-preference votes.
The Greens argue that fossil fuel companies must pay their fair share to ease the burden on everyday Australians, with Faruqi stating, "With more Greens in parliament, like Mandy, we will end new coal and gas." The proposal reflects the Greens' broader strategy to tackle climate change and mitigate its financial consequences for Australians, particularly those in disaster-prone areas.
Incorporating these changes would undoubtedly shake up the insurance industry, with companies like Telstra, which has been increasingly involved in digital insurance services, potentially facing new regulatory challenges. However, whether such a proposal can gain traction in a divided political landscape remains to be seen.
