PLEASE FEEL FREE TO COMMENT or better still contact Karl at ksullivan@insurancecouncil.com.au I'm sure he would like to hear from you. Please See - Townsville Bulletin, Edition Townsville THU 26 MAY 2016, Page 17 Insurance figures tally correctly Karl wrote a letter to the Editor saying Tony had misinterpreted the Northern Australia Insurance Premiums Taskforce report and drawn several incorrect conclusions. 1. the report aimed to estimate the potential cost of a reinsurance pool (it didn't actually use existing figures from the terrorist reinsurance pool which today cost less than the estimate for higher cover) 2. the model used assumptions, rather than claims data 3. the report related only to periods when cyclones have been active 4. It also did not take into account extensive damage that occurs outside a cyclone's direct path 5. The Australian Government Actuary found that in the eight years to 2013, insurers paid out $1.40 in claims for every $1 they received in premiums (not according to Finity in the report) 6. the cost of claims in North Queensland was five times higher than Brisbane, Sydney or Melbourne. 7. The government inquiries have also not advocated for intervention He says "The Insurance Council of Australia and its member companies are investing substantial effort and resources on scientific research and public awareness campaigns to assist households and businesses lower their vulnerability to cyclones." However, its at their own cost and only RACQ and Suncorp recognise self-mitigatigation. "The ICA also urges the Queensland Government to remove its stamp duty on insurance products to further assist households." As if that's going to happen!!!! KARL SULLIVAN, Acting CEO, Insurance Council of Australia.