Some Darwin homeowners are shocked at massive increases in their insurance premiums, despite not making claims. A cyclone re-insurance pool, introduced by the federal government two years ago, is supposed to reduce the cost of insurance in Australia’s north.
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00:00Owning a house in cyclone-prone Darwin, Matt Hoogland expects to pay more for his insurance.
00:08I kind of see that as a fact of where we live and climate change.
00:13But since buying his house in 2021, that cost has increased significantly, rising two-thirds
00:20despite never making a claim.
00:22Bloody hell, you know, it just keeps getting higher and higher.
00:27Matt isn't the only one in Darwin copping a price hike.
00:31The ABC has spoken to several other residents who have been hit with similar increases in
00:36recent years.
00:38The reason for increased premiums in northern Australia is associated with the cyclone risk.
00:43The latest ACCC data shows the median home and contents premium in the NT was just over
00:49$3,000 in 2023, an 11% increase on the year before.
00:56The cost of insurance also rose in northern WA, north Queensland and the rest of Australia.
01:03Strata buildings in the territory saw their premiums rise 7%, with competition among insurers
01:09lacking in the north Australia market.
01:12There's a number of insurers that are still not offering quotes for new business on certain
01:17buildings in northern Australia.
01:19In a bid to reduce the cost of insurance in Australia's north, the federal government
01:23established a cyclone reinsurance pool in 2022, and while data shows it's helped generate
01:30some savings in some areas, overall, premiums are still rising.
01:36We can cop the cost, to be honest, but if it keeps increasing at that rate, it'll get
01:40a bit ridiculous.
01:42The cost of living in Australia's hottest capital city.