Call for market action

Insurance price rises

INSURERS are pushing through more big prices rises or withdrawing from North Queensland, prompting more calls for governments to intervene in the market.

One homeowner in Douglas near Ross River has been asked to pay a 53.6 per cent or $3093 increase in their annual premium by Suncorp, while another homeowner in Kirwan has been told by Youi they are unable to offer a renewal because the latest version of the National Flood Information Database rates their address as a one in 100year flood risk.

It follows reports by comparison website Canstar that building insurance in northern Queensland, which are already double that of southern centres, increased an average of 14 per cent in 2022 compared with the previous year.

Townsville Economist Colin Dwyer said the insurance crisis was not getting the attention of government leaders in Brisbane and Canberra.

“The federal government is acting on a concern of a 56 per cent rise in electricity prices over next two years yet similar price increases have been happening in northern insurance premiums for over a decade,” Mr Dwyer said.

“This regional insurance challenge affects over one million Australians. Regional Australia should not be left behind. Governments have the capacity and must act now.”

Townsville homeowner and investor Michael Kopittke said the increases should be a call to action to get the government’s reinsurance scheme up and running.

“There’s not a lot of traction (on the reinsurance pool),” Mr Kopittke said.

The federal Assistant Treasurer and Minister for Financial Services, Stephen Jones, has asked the Joint Select Committee on Northern Australia to inquire into and report on the operation and implementation of the reinsurance pool.

The committee is scheduled to conduct a public hearing in Canberra on November 25 and is taking submissions.

Townsville Lot Owners Group representative Andrew Turnour said they were preparing a submission at present.

Mr Turnour said they were hearing of insurance premium increases of well over 10 per cent from its members.

“There’s no pricing control. It’s out of control. Economically, it’s hurting North Queensland. Poor old North Queensland is getting hammered,” Mr Turnour said.

Suncorp told the Douglas homeowner that their premium was likely to change even if their circumstances hadn’t.

“Factors like the claims we experience, improved data and changes to business costs can have an impact,” the insurer told the homeowner in a letter quoting the 53.6 per cent increase.