Bob Katter (Kennedy, Independent) Share this | Link to this | Hansard source

My question is to the Minister for Revenue and Financial Services. In May 2014, I raised the issue of skyrocketing North Queensland insurance premiums. ACCC figures show northern premiums rising 80 per cent in five years. With 400 per cent increases, North Queensland is the lead contributor. With pre-Cyclone-Tracy old-building-code buildings all gone, this discrimination cannot now be justified. In 2006, Cyclone Larry damages were $1.5 billion; in 2011, Cyclone Yasi, only $800 million. When will the Prime Minister establish an authority to underwrite exceptional circumstances, providing the platform for yarding profiteering insurers?

Honourable Members:

Honourable members interjecting—

Tony Smith (Speaker) Share this | Link to this | Hansard source

Applause of relief!

Kelly O'Dwyer (Higgins, Liberal Party, Minister for Revenue and Financial Services) Share this | Link to this | Hansard source

I very much thank the member for Kennedy for his question, and I note his very strong interest in ensuring that Queenslanders pay appropriate insurance premiums and not one dollar more than they are required to. I'm happy to report to the parliament that this is exactly why the Australian government has directed the Australian Competition and Consumer Commission to monitor prices, costs and profits in the insurance market in northern Australia in relation to home, contents and strata insurance. This commenced on 1 July 2017, and it will continue for three years. The government have committed $7.9 million to this inquiry, and we will very closely monitor the findings of the surveillance that the ACCC conducts. The government will consider whether there is any need to take action in improving insurance affordability as a result of this very important inquiry.