Strata insurance ‘stunt’
THE Federal Government has supported two recommendations in a recent report into the affordability of residential strata title insurance in a political move expected to do little for those suffering under high premiums or struggling to find insurance.
The first recommendation agreed to by the Federal Government is to urge the Queensland Government to implement a 12-month moratorium on stamp duty charged on strata title insurance, in which the State Government has obliged.
The second recommendation was for the Australian Prudential Regulatory Authority to conduct a review of the risk assessment methodologies used by insurance companies to accurately price risk for strata title insurance coverage.
The Government’s response was that APRA was not appropriate to conduct the review and said it has commissioned the Australian Government Actuary to conduct the review, to determine the reason underpinning recent changes in strata title insurance premium levels.
Seven other recommendations were made but only noted by the Government in a move which Leichardt representative Warren Entsch labelled a political stunt.
“It’s a total political response, and it’s about time they started to look at the best interests in the community rather than the short term political statement,” he said.