The Federal Government will allocate $2.1 million over two years to the Northern Australia Insurance Premiums Taskforce.

Budget papers say $700,000 of funding earmarked for the Australian Reinsurance Pool Corporation will be redirected to the project.

The taskforce’s findings will form part of the Government’s white paper on developing northern Australia.

The project is led by former Treasury executive director Mike Callaghan, and its reference panel members were announced last week.

They have three months to produce a draft report on how to reduce home, contents and strata insurance premiums in the region.

See ANALYSIS