The National Insurance Brokers Association (NIBA) says key concerns with the cyclone reinsurance pool should be addressed before the proposed scheme is implemented.

The legislation, which is before Federal Parliament, is proposed to take effect on July 1, but NIBA says some issues have the potential to leave many Australians without access to much needed premium relief, or worse, result in even poorer outcomes for policyholders.

“In NIBA’s view a small delay in implementation is preferable if it results in a better outcome for policyholders,” it says in a submission to the Senate Economics Legislation Committee inquiry into the bill.

NIBA concerns include that the legislation fails to provide any incentive for insurers who have already exited the northern Australian market to return, and that a proposed 48-hour damage period cut-off after a cyclone is inadequate. It also stresses the need for mitigation options.

The Senate committee, which is due to report by March 24, has published 19 submissions on its website and will hold a hearing tomorrow afternoon.

The Northern Australia Insurance Lobby, Sure Insurance and RACQ will be appearing in the first session, followed by the Strata Community Association and Insurance Council of Australia.

The Australian Competition and Consumer Commission, Australian Prudential Regulation Authority and Treasury are also scheduled to appear.

The committee is chaired by Liberal Senator for Queensland Paul Scarr.