North Queensland Insurance

In 2015, the Liberal National Government set up a Northern Australia Insurance Premiums Taskforce to look at options for reducing home, contents and strata insurance premiums in Northern Australia. The final report was delivered in November 2015. The taskforce was a response to escalating insurance premiums, particularly in North Queensland, where premiums were increasing as much as ten-fold. Apartment owners were particularly hard hit when there were only one or two insurance companies operating in the market and strata title laws compelled owners to take out insurance, regardless of how unaffordable it might be. Among the report’s recommendations for reducing premium costs were mitigation, better risk assessment and pricing, and a reinsurance pool. The reinsurance pool could potentially attract more players in the market, allowing them to reduce their own exposure to risk. The government is yet to respond to the report.