Residential and business insurance costs are “much higher” in the Pilbara than in Perth and in recent years have risen “very rapidly”, the Northern Australia Insurance Premiums Taskforce has heard.

While insurance affordability in northern Queensland is inextricably linked to the region’s extreme weather, Regional Development Australia Pilbara (RDAP) notes inland WA towns such as Tom Price and Newman “are not cyclone-prone yet have much higher insurance costs than Perth”.

It says there is “considerable” concern about high insurance costs in the Pilbara business community, with costs in Port Hedland 300% higher than in Perth for comparable coverage.

RDAP urges the taskforce to be aware of distinct local factors when making recommendations to reduce the cost of cover in northern Australia.

“While it is understood that the northern Australia region is cyclone and natural disaster-prone, high insurance costs in the Pilbara appear to be based on the perceived risks by insurers of the Pilbara and the high cost of claims in north Queensland.

“However, it is not clear that high insurance costs in the Pilbara are related to a history of major claims or take into account the implementation of building codes for the construction of cyclone-proof buildings.”