THERE is no justification for Zurich Financial Services to slug body corporates in the Douglas region with an astronomical 350 per cent price hike.
Zurich is one of only a few companies to offer compulsory insurance to body corporates and the others are sure to follow suit now it is public knowledge what its intentions are.
Body corporate insurance has already almost doubled in the last 18 months in the Douglas region, so when the two rises are combined they equate to almost 10 times what was charged just two years ago.
As Paradise Links owner John Carney said, what business can sustain such astronomical rises.
The time has come for the Federal Government to step in and conduct a comprehensive investigation into the insurance industry.
While flood victims in southeast Queensland wade through a pile of bureaucratic red tape to access their insurance claims, we’re quietly copping it as well.
The fact is the risk for body corporate insurance is minimal.
It does not cover insurance for storm surges and the chances of apartment complexes or resorts being destroyed by fire is minimal.
While insurance companies may beat their chests about the threat of cylcones, there have been none in the region besides Cyclone Larry in Innisfail for more than a decade worth worrying their bottom line.
In the meantime, these same insurance companies have been creaming it with ever-increaseing premiums.
In the meantime, owners have been left with no leg to stand on.
At a time when the local tourism industry is battling a severe downturn, we now have to deal with the possibility of investors pulling out of the region because of the sky-high levies.
There has never been a better opportunity to run a fine-tooth comb through the entire insurance sector and find out why they cannot offer adequate cover for a reasonable price.
You can be sure the majority of them are still returning a very handy profit.
It’s time for politicians to realise that money is ours as much as theirs, only it is only the consumer who is contributing .