Strata in­sur­ance ‘stunt’

Port Douglas & Mossman Gazette - - NEWS -

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.

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