It says mitigation and adaptation are important but are unlikely to provide a “comprehensive solution” on their own.
“Allianz remains of the view that a natural disaster reinsurance pool could be used to address the lack of affordability of home insurance premiums for those Australians facing high, weather-related insurance risks,” the submission says.
“With appropriate government regulation, a natural disaster reinsurance pool could be established and operated by the insurance industry and funded by a modest levy on residential insurance policies, similar to the way the terrorism pool is funded by a modest levy on commercial property insurance policies.”
Allianz made similar submissions to the Natural Disaster Insurance Review following the 2011 Queensland floods.
The review recommended a “flood risk reinsurance facility”, but the Government did not adopt it.