The cyclone reinsurance pool legislation passed the House of Representatives last week as the Northern Australia Insurance Lobby (NAIL) also urged a smooth passage through the Senate.

NAIL Co-Chairman Tyrone Shandiman says it’s important the legislation is passed, taking into account that a 12-month review will provide an opportunity to make changes as necessary.

“We don’t think it is perfect, but we would rather the legislation is passed than not,” he told insuranceNEWS.com.au. “There are a few things we have concerned about, but when you look at it in general it should provide savings for consumers.”

Mr Shandiman says NAIL is in the process of seeking assurance from Labor and other parties that they would support the 12-month review, which has been promised by the Government rather than being enshrined in the legislation.

Issues for review include how operation of the pool might affect those who are not covered and concerns around accommodation strata and aged care facilities.

Labor’s Matt Thistlethwaite told the House of Representatives last week that if the party was elected at the forthcoming election it would ensure the pool is put in place, and would give priority for mitigation infrastructure projects. But he called for the pool modelling to be released

The Government says over 10 years, the pool is expected to reduce insurance premiums by up to $2.9 billion for eligible household, strata and small business insurance policies. Homeowners in northern Australia with the most acute cost pressures are expected to benefit from up to 46% premium discounts, strata properties up to a 58% and SMEs up to a 34% discount.

“I think the public deserve to know whether or not those savings will be real and what the veracity of those figures is,” Mr Thistlethwaite said.

Treasury declined to comment on the modelling when contacted by insuranceNEWS.com.au, while no response was received from an inquiry sent to the office of Assistant Treasurer Michael Sukkar.

The pricing formula will be finalised before July 1, a Treasury spokeswoman said.

See Analysis.