The City of Karratha is calling on the State and Federal Government to address rising insurance costs on the back of the second ACCC insurance monitoring report.
Residents in Karratha continue to be slugged with high insurance premiums impacting the cost of living and liveability of Karratha despite the launch of the cyclone reinsurance pool.
The report, released on December 8, found average premiums for combined home and contents insurance increased across Australia in 2022–23, however Pilbara was hit the hardest, with Karratha having a median premium of $5,117.
It also found average strata premiums in 2022–23 were highest in north Western Australia at $14,439, and the average premium for small business building and contents insurance was highest in north Western Australia at $6,287, an increase of 22 per cent.
City of Karratha Mayor Daniel Scott said insurance costs were one of the major barriers to home ownership and the liveability in Karratha.
“Despite the reinsurance pool scheme being in place six months at the time the data was gathered, we are yet to see any tangible shift in premiums,” Cr Scott said.
“The cost of insurance is a major barrier to home ownership and ability to access more affordable housing in Karratha which in turn has a disproportionate impact on lower income households.
“Anecdotal evidence also suggests insurance premiums in Karratha range anywhere from $5,000 to $16,000. This puts a massive burden on residents and limits the affordability of our region for home owners and small businesses.
“Small business owners in our region are also slugged with high premiums and insurance, we are aware of businesses paying more than $60,000 in insurance every year and when you add this cost to wages, rent and power, it sure makes it hard to do business in the Pilbara and the North West.
“We want Karratha to be a sustainable place for our residents to live and the exorbitant business and home insurances are a major barrier to the liveability of our city.”