Stakeholders including insurers and strata groups have called for more measures to ease premium pressure on consumers as the cyclone reinsurance pool nears its mandatory review.

The Insurance Council of Australia says the most effective way to lock in long-term affordability is to reduce underlying risk, which requires government action.

“Insurers are committed to working with the federal government and communities to improve affordability and availability of general insurance for all Australians, particularly those in northern Australia who are vulnerable to worsening extreme weather impacts,” a spokesperson said.

Last week, the Australian Competition and Consumer Commission released its annual review of the pool, which found average home and contents premiums in medium to high cyclone risk areas have fallen 11%. In locations with low and zero cyclone risk, premiums have increased by 4% and 7% respectively. The review found the pool has yet to achieve its other objectives.

ACCC says it submitted its report to government by mid-year to inform the legislative review scheduled to start after July 1.

The commission found average strata premiums in medium- to high-risk areas fell 7% after insurers entered the pool.

The Strata Community Association says the government needs to consider more measures such as stamp duty relief, targeted assistance and additional avenues for securing cover when no or few options exist.

“It is unacceptable that there are many Australians living in areas which cannot access insurance to cover their homes, especially when in strata properties obtaining insurance is a statutory requirement,” the group said.

Australian Consumers Insurance Lobby chair Tyrone Shandiman says authorities “must continue refining the pool to ensure the benefits reach those who need them most”.

Australian Reinsurance Pool Corporation CEO Chris Wallace said: “The cyclone pool is one lever to improve affordability outcomes for medium- to high-risk cyclone areas.

“We urge all insurers to continue recognising and rewarding mitigation efforts – such as cyclone shutters and reinforced roofing.”

See the ACCC report here.