The Australian Greens have launched the first part of a comprehensive plan to deliver cheaper insurance during a climate crisis, in a bid to tackle the cost-of-living crisis and shift the costs of the climate crisis to those responsible for it.
Deputy Leader of the Australian Greens, Senator Mehreen Faruqi, will announce the first steps today alongside Greens' candidate Mandy Nolan in the Greens' winnable seat of Richmond, which is Australia's second most at risk electorate to climate disasters. The Greens only need a 1.8% swing to win Richmond this election, and Mandy Nolan has been running a strong grassroots campaign in Richmond for over a year.
As at March 2024, more than 1.6 million households were experiencing home insurance affordability stress, with the climate crisis driving an increase in insurance premiums which significantly outpaced price rises for nearly all other goods and services. Meanwhile, insurance companies have been raking in record profits.
The Greens' plan for cheaper insurance includes the following elements:
- ENDING STAMP DUTY- Incentivising state governments to abolish stamp duty on house and car insurance.
- EXPANDED REINSURANCE POOL- Expanding the coverage of the Cyclone Reinsurance Pool to include all natural disasters.
- POLLUTER PAYS- Requiring coal, gas and oil companies to contribute to the reinsurance pool and Disaster Ready Fund.
- CONSUMER PROTECTIONS- More ACCC powers and stronger disclosure obligations on insurance companies to explain premium pricing.
- RISK MAP- Establishing a public national disaster risk map and database.
And more to be announced.
An independent costing by the Parliamentary Budget Office (PBO) shows that the stamp duty changes alone will put more than $4 billion back in people's pockets across Australia in the first year.
In NSW, the removal of stamp duty could reduce insurance premiums by around 10% for home insurance. In areas of heightened climate risk, such as the Northern Rivers, testimony to a recent Senate Inquiry suggests this change alone could save households $500-600 each year. In addition, an expanded reinsurance pool, increased transparency, and better risk mapping will lower premiums even further.
With a minority parliament looming, the announcement is the latest in the series of the Greens' 'Robin Hood reforms' that will be put on the table in any post-election negotiations, and will be funded by making big corporations and billionaires pay their fair share of tax.
As stated by Deputy Leader of the Australian Greens, Senator Mehreen Faruqi:
"The Greens will make fossil fuel companies pay their fair share to make insurance cheaper for everyday people.
"Families, renters and retirees should not have to pay skyrocketing insurance premiums for a climate crisis they did not cause. Filthy rich coal and gas companies caused the climate crisis and they should pick up the tab.
"During the Greens-led Senate inquiry into the impacts of climate risk on insurance, I heard from witness after witness about how extremely opaque insurance premium pricing is in Australia. There is a real lack of transparency and clarity, which makes it easier for insurance companies to price gouge and exploit the climate crisis to increase profit margins.
"People's insurance premiums are skyrocketing with no explanation as to why. Consumers have a right to know how their premiums are being priced and deserve a meaningful explanation of why they are doubling and tripling in price.
"Stamp duty on insurance premiums is plainly unfair when people who face higher risks pay higher premiums and then more stamp duty on top. Abolishing these taxes is a no-brainer way to immediately reduce premiums. There also must be stronger oversight, monitoring, and disclosure requirements.
"A free, accessible and up to date national disaster risk map and database that take into account climate change are crucial for informing communities, councils, insurers and government to prepare for climate-driven disasters like floods, respond to the aftermath, and identify mitigation measures.
"The Albanese Government's decision to approve 32 new coal and gas projects since coming to power will make the climate crisis worse and make insurance more expensive.
"The Greens will make corporations pay their fair share of tax to fund the services people need.
"With more Greens in parliament, like Mandy, we will end new coal and gas."
As stated by Greens candidate for Richmond, Mandy Nolan:
"Our region is one of the most climate impacted and has some of the least affordable insurance in the country. The big corporations that caused this climate crisis should be the ones paying for it, not our local families who are already doing it tough.
"We've had the same Labor MP for 20 years and despite our region experiencing one of the worst climate fueled disasters in Australian history she has stood by while her government has approved 32 new coal and gas projects.
"We only need a 1.8% swing to win here. This election, you can vote to keep Dutton out, stop new coal and gas and make big fossil fuel companies pay their fair share."
REFERENCES
https://www.climatecouncil.org.au/resources/uninsurable-nation-australi…
https://www.news.com.au/finance/business/other-industries/insurer-profi…;
https://www.revenue.nsw.gov.au/taxes-duties-levies-royalties/insurance-duty/types-of-insuranc
