Noosa 360

Following ongoing advocacy regarding the rising cost of home insurance, we submitted a Question on Notice to the Minister for Finance, Trade, Employment and Training seeking information on the Queensland Government’s response to increasing insurance premiums, which have reportedly risen by an average of 51 per cent over the past five years. We also sought information on advocacy to the Australian Government and national agencies, initiatives being undertaken to improve affordability and resilience, and whether the Queensland Government had considered re-establishing a State Insurance Office.

The Minister provided the following response in italics.

The Queensland Government acknowledges that insurance affordability is a key cost of living issue, with premiums having increased in recent years for a range of reasons, including natural disasters and risk pricing from insurers.

Insurance premiums and insurance availability can vary greatly between insurers. To get the best deal, households are encouraged to shop around and seek alternative quotes from more than one insurance provider.

Importantly, the Australian Government has a critical role to play in supporting insurance affordability, given it is responsible for the regulation and monitoring of the insurance industry, including decisions about the coverage of flood insurance made by individual insurers.

The Australian Government is also responsible for the $10 billion Cyclone Reinsurance Pool, to put downward pressure on premiums particularly in Far North, North and Central Queensland.

The Australian Prudential Regulation Authority is the national regulator for Australia’s financial institutions, including general insurers.

Consumers can also lodge a complaint through their own insurer’s complaints process, if they are dissatisfied with their insurance policy or premium. If consumers are dissatisfied with the outcome, they can raise the matter with the Australian Financial Complaints Authority, which is an impartial and independent organisation that assists consumers to resolve complaints regarding general insurance products free of charge.

The Queensland Government has also been strongly advocating for the Australian Government to improve insurance affordability and remains actively engaged across all levels of government and with the insurance sector, with a continuing focus on initiatives to build resilience and support insurance affordability through various programs. This includes work across ministerial portfolios.

The Treasurer, Minister for Energy and Minister for Home Ownership wrote to the Insurance Council of Australia and insurance companies on 4 June 2026, highlighting Queensland’s largest percentage decrease in insurance claims for motor vehicle theft on record and requesting that these reductions are appropriately reflected in risk assessments when setting car insurance premiums in Queensland. The Queensland Government has called on insurance companies to support Queensland customers through a meaningful and permanent reduction in motor vehicle insurance premiums.

I have also written to the Commonwealth Treasurer on 10 November 2025, highlighting that it is critical that the Cyclone Reinsurance Pool continues to operate, backed by the Australian Government’s guarantee.

The Minister for Local Government and Water and Minister for Fire, Disaster Recovery and Volunteers held a second insurance roundtable in April 2026 to put the focus on new flood studies and how they can be used to apply downward pressure on insurance premiums.

The Queensland Resilience and Risk Reduction Program (QRRRP) is the Queensland Government’s new approach to providing a strategic, annual funding program, using Disaster Recovery Funding Arrangements Efficiencies. The QRRRP aims to improve Queensland’s resilience to future disaster events across three key streams:

• Stream 1 – Queensland Betterment Fund (with funding doubled to $40 million by the Queensland Government).
• Stream 2 – Queensland Resilience and Risk Reduction Fund.
• Stream 3 – Hazard and Risk Priorities Fund.

Further, in partnership with agencies and local governments, the Queensland Government has implemented flood management plans, resilience strategies, and flood risk, flood warning and flood communication initiatives to improve safety, build resilience, and minimise the impacts of floodwaters.

The Queensland Government is investing heavily in flood data, flood mitigation and resilience, and insurers need to recognise that work in their premium pricing.

Published guidance on how homeowners can make their home more resilient to natural disaster events including floods, cyclones and storm tides is available on the Queensland Reconstruction Authority website.

The Government is not considering the re-establishment of a state insurance office.

While these measures are welcome, the key measure of success will be whether they deliver meaningful reductions in insurance premiums for Queenslanders. We will continue monitoring the outcomes of these initiatives to determine whether additional reforms, including the potential re-establishment of a State Insurance Office, may be warranted.

Further information

For information on the Cyclone Reinsurance Pool, visit:
https://www.arnet.gov.au/business-and-industry/support/cyclone-reinsurance-pool

To learn more about the Queensland Resilience and Risk Reduction Program (QRRRP), visit:
https://www.qra.qld.gov.au/program/queensland-resilience-and-risk-reduction-program

For guidance on improving your property’s resilience to floods, cyclones and storm tide, visit the Queensland Reconstruction Authority:
https://www.qra.qld.gov.au/resilient-homes

To lodge a complaint about your insurance policy or premium, you should first contact your insurer. If you are dissatisfied with the outcome, you can contact the Australian Financial Complaints Authority (AFCA):
https://www.afca.org.au

To advocate directly with the Minister for Finance, Trade, Employment and Training regarding insurance affordability, email finance@ministerial.qld.gov.au. Please copy our office via noosa@parliament.qld.gov.au and forward us any response you receive.