The Insurance Council of Australia has called on new Queensland Premier David Crisafulli to act instantly on premium affordability in the state most exposed to extreme weather.

Queensland has a 9% stamp duty on insurance policies and it is estimated the levy will cost residents $1.7 billion this financial year, up from $1 billion in 2019-20.

“The most immediate way to reduce insurance premiums in Queensland is abolishing the 9% stamp duty on insurance premiums,” ICA CEO Andrew Hall said. “If the Crisafulli government does not abolish stamp duty on insurance, it should invest the revenue collected ... in mitigation initiatives that directly benefit Queenslanders and put downward pressure on insurance premiums.”

Mr Crisafulli was sworn in today after leading the Liberal National Party to victory in Saturday’s state election.

In the run-up to the election, ICA pushed for insurance tax reform and called on the next government to tackle extreme weather challenges.

Now ICA has repeated its call to the new Crisafulli government.

“About 75% of all Australian homes in cyclonic wind regions are located in Queensland, and it has the largest number of properties at risk of flood of any state or territory,” the peak body said.

It says the new government’s insurance priorities should include defending critical infrastructure by increasing funding to protect against flood and cyclone; stopping development on floodplains and making new homes more resilient to extreme weather; and supporting the most vulnerable people with programs that reduce risk and put downward pressure on insurance costs.