27 June, 2021
Insurance control hint
THE Morrison Government has hinted at introducing new initiatives to control and regulate North Queenslanders home insurance costs.
The surprise and dramatic announcement by Assistant Federal
Treasurer, Michael Sukkar has
been prompted by a new insurance competitor, Sure Insurance,
offering a 70 percent cut to North
Queensland’s home insurance
The Assistant Treasurer’s
sudden announcement was also
promoted by claims made to The
Mackay Local News by Federal
Opposition Insurance spokesman
Matt Thistlethwaite, that Prime
Minister Scott Morrison’s new
$10 billion home reinsurance pool
would only create a 10 percent cut
in home insurance charges.
“The Government will explore
ways to ensure that reinsurance
savings get passed onto consum-
ers as part of the final design,” Mr
“Options include tasking the
Australian Competition and Con-
sumer Commission (ACCC) with
monitoring home insurance prices
to ensure that the savings from
the reinsurance pool are making it
into insurance premiums.
“This includes altering existing
disclosure regimes to more clear-
ly show consumers, what portion
of their insurance costs are being
driven by reinsurance costs.
“The Federal Government’s
reinsurance pool for cyclone and
flood damage will cover North
Queensland home owners from
July 1, 2022,” Mr Sukkar added.
The claims of a just 10 percent
cut in future North Queensland
home insurance rates made by
Mr Thistlethwaite have also been
hotly disputed by Dawson MP
He was a key figure in creating the Federal Government’s
new initiative to cut North
Queenslander’s home insurance
“No one figure can be given at
the date, but predictions are for a
50 percent cut in insurance premi-
ums,” Mr Christensen said.
But both the Federal Government and the Federal Labor Opposition have come out in support
of Sure Insurance’s 70 percent cut
in North Queensland home insurance rates.
Mr Thistlethwaite, said
that “it’s great to see some com-
petition in the North Queensland
home insurance market.
“I hope that this new player can
shake-up home insurance and get
cheaper premiums for long suffer-
ing residents in North Queensland.
“But Sure’s 70 percent home
insurance discount is based on a
new business mode.
“Its strength is that every
property insured by Sure has an
onsite inspection, whereas other insurance companies just do
home insurance quotations over
“I hope that Sure will offer
home insurance to all customers
in North Queensland and not just
insure low risk houses, plus Sure
will have to payout if there is a cyclone or a flood.
“The Labor Party also wants to
make sure there are incentives in
reassurance to ensure better build-
ing standards and better building
codes to protect homes.”
Mr Christensen added that Sure Insurance’s 70 percent discount is based on a very special model in North Queensland that other Australian insurance companies haven’t followed.