North Queensland insurance update – where to now?
Accommodation providers and unit owners are appalled at the findings of a report into insurance costs.
On 19 October, the Australian Government Actuary released its report into the price of strata title insurance in North Queensland. This report was in response to the federal government’s request for rigorous investigation into insurance price rises, following its Natural Disaster Insurance Review released in June.
Colin Archer, boss of Archers Body Corporate Management P/L, said, “With the majority of our clients in North Queensland affected by the excessive price increases, we were alarmed to read that the report has concluded that strata title insurance was significantly under-priced for a number of years from 2006-07 onwards and the current pricing was a more accurate reflection of the cost to insure.
“We see the outcome of this report as extremely disappointing for unit owners in North Queensland.
“The increase in the price of insurance in the North Queensland region has been devastating for unit owners. Owners were looking for answers within this report and looking for the insurance companies to step up and take responsibility,” said Mr Archer.
“Unit owners are effectively being told they are being penalised for historical under-pricing and a lack of price sophistication from insurers. The report concluded that the historical under-pricing could be linked to insurer’s attempts to aggressively gain market share – at the expense of the strata community.”
The federal member for Leichhardt, Warren Entsch has called on insurance companies and the government to step up and assist North Queensland unit owners and is seeking support in an online petition for Fair and Affordable Insurance Premiums.
Strata insurance in North Queensland will be examined at the next meeting of the Insurance Reform Advisory Group.
AccomNews is not affiliated with any government agency, body or political party. We are an independently owned, family-operated magazine.
