The federal government’s response to a parliamentary inquiry into the cyclone pool mostly “notes” recommendations and points to a legislative review and other work under way.

The Joint Select Committee on Northern Australia tabled a first report in March 2023 and a final report in March last year.

The government responses to both, released this month, say an ongoing statutory review of the Terrorism and Cyclone Insurance Act “has had some regard” to some of the recommendations.

“Consideration is also ongoing as to how best to tackle the interrelated issues of rising natural hazard risk and insurance affordability, in the context of the Australian government’s other priorities such as its housing agenda.”

The legislative review of the cyclone and terrorism reinsurance pools started last September and the government says Treasury will provide a report “in due course”.

The response also points to the Disaster Ready Fund, the Hazards Insurance Partnership and the Insurance Affordability and the Natural Hazard Risk Reduction Taskforce, which was announced in the 2024 budget and concluded at the end of that year.

“The government is considering the advice of [the taskforce] and working with relevant agencies and stakeholders on how it can further improve natural hazard risk and insurance affordability.”

This year’s budget commits to developing options to improve clarity on the basis of home and contents premiums and legislating standard definitions for natural hazard terms, the response notes.

Parliamentary committee recommendations included that the government review the 48-hour post-cyclone claim period and consider whether to “sunset” cover for new builds past a certain date.

The committee proposed a permanent national resilience program, called on the government to consider targeted tax offsets and direct subsidies to improve mitigation for high-risk northern homes, and recommended funding the Australian Competition and Consumer Commission to monitor insurance until at least 2030.