The Road Ahead : June 2013
RACQ HAS URGED the Federal Government to reconsider its recent decision not to proceed with the establishment of a reinsurance pool to provide discounts on insurance for properties in high-risk flood areas. RACQ Insurance CEO Bradley Heath said flood cover and affordability were the two key issues facing the insurance sector and government in the wake of three years of natural disasters across the country. Mr Heath said RACQ supported the National Disaster Insurance Review (NDIR) recommendation to establish a pool to assist householders with the affordability of flood insurance. "The flood premium subsidies delivered via the NDIR pool could be progressively wound back as the flood mitigation systems are introduced in specific locations," Mr Heath said. "It has often been said that those who can least afford insurance are those who most need insurance, racq supports high-risk reinsurance pool ... it has often been said that those who can least afford insurance are those who most need insurance... INSURANCE PRODUCTS ARE ISSUED BY RACQ INSURANCE LIMITED, A WHOLLY OWNED SUBISIDARY OF THE ROYAL AUTOMOBILE CLUB OF QUEENSLAND LIMITED. CONTACT OUR BRANCHES, AGENTS OR PHONE 13 1905 FOR A PRODUCT DISCLOSURE STATEMENT. PLEASE READ THE PDS BEFORE YOU MAKE ANY DECISION REGARDING THIS PRODUCT. STORY MIKE SOPINSKI QUEENSLAND'S LARGEST CLUB 65 JUN/JUL 2013 THE ROAD AHEAD INSURANCE | MEMBER ESSENTIALS and that is where the government must urgently step in to provide the necessary pool to protect those who cannot protect themselves. "Mitigation, or prevention of flood damage, is vital if we are to try and reign in premium increases across the insurance sector. "The fact is, Australia has had a series of natural disasters which have increased international reinsurance premiums, and these costs are passed on to the policyholder. Mitigation will allow insurance customers to reassess risk in high risk areas, but it is still only part of the solution. "Insurance is based on risk rating and we believe insurance policyholders should not be forced to subsidise those who are in high risk areas. Insurance should play its part, but so should government. "Queensland has certainly endured more than its fair share of natural disasters in recent times, and any initiative which seeks to reduce the social and economic cost of flooding is vital," Mr Heath said. RACQ Insurance has offered standard flood cover for all its household insurance policyholders since July 1, 2012. "RACQ remains focused on trying to make insurance affordable for all Queenslanders and will continue to offer a quote on household insurances, irrespective of the location of the home, or the community where it's located," Mr Heath said.