Australia is building a cyclone reinsurance pool
International Desk: | Published: 2021-05-08 08:37:08
Australia is going to create a $10 billion Cyclone Re-Insurance pool. The federal government announced the initiative yesterday to reduce insurance premiums for homes and businesses in cyclone-prone North Australia.
The reinsurance fund will cover cyclone and flood damage in Northern Australia from 1 July 2022 and will be supported by a government guarantee of A ১০ 10 billion, Prime Minister Scott Morrison said in a statement.
It will reduce insurance premiums by more than 1.5 million for households, strata and small businesses across northern Australia for more than 10 years.
More than half a million residential, strata and small business property insurance policies in Northern Australia are expected to be eligible under the reinsurance pool.
“We are confident in the future of North Australia,” Morrison said. This means we need to take further steps to increase the sustainability of Australians living and working in Northern Australia.
He added that homeowners and businesses have faced severe insurance costs, and in some cases have not received insurance benefits at all. That’s not right and we’re going to change that.
Our plan will allow more Australians to provide affordable insurance in cyclone-prone areas, added Scott Morrison.