Jakony Tribune. Continue Reading at - Australia breaking News, Opinion, and Analysis | The Epoch Times
The Productivity Commission (PC) has said that the government’s intervention in the insurance market could distort choices and encourage people to make risky decisions.
At a Senate inquiry hearing on Sept. 30, Steward Turner, a research manager at the PC, raised the issue that measures implemented by the government to reduce home insurance premiums, such as the cyclone reinsurance pool, could bring about unintended consequences.
“First, they can distort investment decisions to the detriment of productivity growth and can inadvertently encourage communities to make decisions that can increase the costs of future natural disaster risks,” he said.
Turner’s remarks were previously echoed by Actuaries Institute CEO Elayne Grace, who gave the example of the beach flood insurance policy introduced by the U.S. government, which encouraged property development in risky areas and caused significant problems….
