Premiums in spotlight

Forum expected to accumulate insurance hike horror stories

A RALLYING cry has been issued for Far Northern residents to tell their home insurance stories and end premium hikes in the region.

A Cairns forum will facilitate public submissions to the Australian Consumer and Competition Commission as it investigates the cause of huge increases in premiums in Northern Australia.

It follows many independent reports that found pricing was fair and listed cyclone mitigation as the most sustainable way to drive down premiums.

Federal Leichhardt MP Warren Entsch, who backs a government-owned cyclone mutual to offer lower premiums, said it was a chance for customers to be heard.

“It is absolutely critical,” he said. “You need to get out there and show this is a major issue …. They are looking at a much broader scope now.”

The Insurance Council of Australia is fully co-operating with the ACCC.

Premiums rose 80 per cent in North Queensland between 2008 and 2013.

Cairns Mortgage Brokers director Roger Ward said residents should show insurance renewal notices to the ACCC.

“The industry has had years to work this out and there has been no effective response,” he said. “This will demonstrate how high premiums can be.”

ICA communications manager Campbell Fuller said lowering risk to individual properties, improving building codes and land-use planning and abolishing unfair taxes on insurance were the best way to lower premiums.

Federal Kennedy MP Bob Katter said companies were hitting everyone regardless of cyclone risk and mitigation.

He said a resident at Julia Creek, 650km west of Townsville, had $19,000 in premium increases in 17 years.

“Julia Creek is not noted for floods, cyclones or tidal surges,” he said.

He also backed a cyclone mutual pool, but criticised the inquiry as a “waste of money”

“When it comes in North Queensland, all we can ever get is an inquiry,” he said.

The ACCC is hosting the public forum at Rydges Plaza at 5.30pm on November 16.