LISMORE MP Janelle Saffin on behalf of the Northern Rivers region’s Community Leaders Forum has made a submission to the Federal inquiry into insurers’ responses to the 2022 major floods claims.
Ms Saffin, who is NSW Parliamentary Secretary for Disaster Recovery, previously called for this inquiry, gave evidence to its public hearing in Lismore and hosted two roundtables on insurance reform, also held in Lismore.
The Community Leaders Forum includes herself, fellow State MPs Tamara Smith (Ballina), Geoff Provest (Tweed), and Richie Williamson (Clarence); Federal Member for Page Kevin Hogan; and mayors Cr Steve Krieg (Lismore City), Cr Chris Cherry (Tweed Shire), Cr Kylie Webster (Kyogle), Cr Michael Lyon (Byron Shire), Cr Sharon Cadwallader (Ballina Shire), Cr Robert Mustow (Richmond Valley) and Cr Peter Johnstone (Clarence Valley).
Ms Saffin wrote to House of Representatives Committee on Economics Chair Dr Daniel Mulino, explaining that the Forum’s submission originally was commissioned as an insurance status review by the then Northern Rivers Reconstruction Corporation.
“I thank its authors, academics from the University of Queensland’s Business School – Professor Paula Jarzabkowski, Dr Katie Meissner and Dr Matthew Mason – who are very learned in this area,” Ms Saffin said.
“They have made a case study of Lismore that can be extrapolated across the Northern Rivers region, New South Wales, and indeed, other places in Australia.
“With insurance it appears that the global community is facing similar issues to us with insurance affordability. Whatever is done, Government needs to be very involved in the response, and we must require mitigation and adaptation to be in the mix.”
Ms Saffin noted the submission found that there is no single, pre-existing solution for the complex problem of uninsurability in Lismore. It makes four recommendations about the potential of a new insurance ecosystem for Lismore:
- A national risk pool is a tested solution that, when well-designed, could support affordable insurance in Lismore for residents and small businesses providing it is accompanied by a medium and long-term program of risk reduction including relocation.
- Small parametric products, which can be spent flexibly by policyholders, have potential to provide economic benefit to Lismore business owners supporting them with rapid response to business interruptions, particularly from small-scale events.
- Parts of Lismore fall within the uninsurable zone and could be considered for insurance innovations to support planned migration and provide insurance cover during any transitionary period.
- Lismore residents and business owners will benefit from a sustained program of embedding risk management capabilities throughout the community to support them in reducing their risk and increasing their financial ability to respond to hazards.
Dr Mulino’s Committee’s report on its inquiry is due by 18 October 2024.
