A Senate committee review of the cyclone and related flooding reinsurance pool bill says it is satisfied the scheme will deliver improved insurance access and affordability in targeted regions, while future reviews will provide the opportunity to make improvements.

The committee expects the bill to increase competition in cyclone-prone areas, and was reassured by evidence from Treasury officials in considering pricing improvement doubts given the lack of publicly available information on modelling.

“The committee is persuaded by the evidence from Treasury that its comprehensive data analysis underpins the pool's design and will ensure that it delivers on its key objectives,” it says.

“Recognising the broad view held by submitters that it is imperative the bill is passed as soon as possible with a review planned in the immediate future, the committee accordingly recommends that the bill be passed.”

The proposed legislation is currently before the Senate, which has resumed sitting today ahead of the handing down tomorrow of a pre-election Federal Budget.

The Greens plan to move amendments to immediately expand the cyclone scheme’s scope to include all flood damage to residential and small business property and to extend cover to motor vehicles, while it also says in future the pool should include other climatic events and it should be funded by taxes on the fossil fuel sector.

“A government reinsurance pool should cover all climate disasters across the whole country, and not just those particular to northern Australia,” Greens Senator Nick McKim says.

“As well as ensuring that all Australian's enjoy the cost savings of a government scheme, a fully national scheme would make it in the government's direct interest to invest in the public works that are desperately needed to help keep insurance costs down in the first place.”

The cyclone reinsurance pool is scheduled to commence from July 1, with an initial review in 12 months and subsequent reviews on a set schedule.