Insurance costs have been a hot topic of conversation since the big flood in 2022. Premiums rose substantially in 2023 and continue to rise in 2024.

A Goonellabah resident told the Lismore App their house and home & contents insurance has increased by more than 40% for the second year in a row.

Prior to the big flood here and throughout NSW in 2022, they were paying $1,417 in 2021. 2022 saw an increase to $2,440 and this year $3,491. That is an increase of 72% and 43% respectively. Of course, the value of the house has increased as has the value of the contents. However, that is not the reason for the increase alone.

That is someone living out of the flood plain. Imagine living in the flood plain, there are some people paying over $5,000 a year for a home worth $500,000 and some that simply cannot afford flood insurance so are forced to run the gauntlet.

What government actions are being taken to lower insurance premiums to make it affordable for all Australians?

Many live in flood-affected areas. In fact, the Insurance Council of Australia (ICA) said that nearly a quarter of a million properties in Australia are exposed to 1-in-20-year flood risk and the way to lower the burden on premiums is through flood mitigation.

State Member for Lismore Janelle Saffin and Federal Member for Page Kevin Hogan both believe in flood mitigation as an option.

Ms Saffin used Townsville as an example where following mitigation measures people's insurance premiums were reduced.

Kevin Hogan told the Lismore App, "Flood mitigation needs to happen so we are all insurable and this is a responsibility of government."

Mr Hogan spoke of mitigation measures in Brisbane and Grafton as successful examples.

As we know, flood mitigation for Lismore and the Northern Rivers catchment is at least 2 years away, if not 5, so what do we do until then?

"In the interim, over the next year or two," Ms Saffin said, "We will continue to be underinsured or the government needs to underwrite insurance. I think we should underwrite, to come to an agreement with the ICA."

Ms Saffin also says we may have to think differently than we do now.

"We could explore differential products where I insure my house in South Lismore for $250,000 and will pay x amount of dollars. I've been quite active in this field but there are no solutions yet."

Mr Hogan has been banging the flood mitigation drum at every opportunity over the last 18 months.

"If we can take 1 metre off a potential major flood, and we take 2022 out of the equation because it was a unique event, and taking 1954 and '74 as previous maximums that means a flood of 11.2m which means a lot more people will be offered flood insurance at reasonable rates."

Government itself can look at what it charges insurance companies to further lower insurance premiums.

The state government is looking at removing or changing the Emergency Services Levy (ESL). In the case of our Goonellabah resident, that is $346.37 in this year's premium.

Under the existing model, insurance policyholders contribute 73.7 per cent of the ESL. Local Councils contribute 11.7 per cent and the State Government contributes 14.6 per cent.

The stamp duty is another $288.30 and the GST is $203.66 making $838.33 of the insurance policy made up of government charges.

Stamp duty goes to the state government and GST, as we know, to the federal government which distributes it to the states and territories.

The point is, that both the federal and state governments could change the charges involved to lower premiums and raise revenue elsewhere. Complicated, yes, but possible.

There is a Federal Government Inquiry into the insurance companies' response to the flooding across the country in 2022, apparently, this will be coming to Lismore and the Northern Rivers early in 2024.

As usual, there is a lot of talk but the big question is when will we see some solutions that will help ordinary people?