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    Coat of ArmsMedia Release
    Premier
    The Honourable Campbell Newman

    Joint Statement - Joining forces to drive down insurance costs

    Premier
    The Honourable Campbell Newman

    Friday, November 29, 2013

    Joint Statement - Joining forces to drive down insurance costs

    The Federal and Queensland Governments have committed to working together to develop proposals and options to directly address the issue of insurance affordability in North Queensland.

    It follows a meeting between Federal Assistant Treasurer, Senator the Hon. Arthur Sinodinos AO, and Queensland Premier Campbell Newman in Brisbane this week. 

    “The extremely high cost of insurance in North Queensland is a problem that has been around for a number of years, it is causing significant financial and emotional strain for the North Queensland community.” said Senator Sinodinos.

    “Dealing with this issue was an election commitment of the Abbott Government.”

    The need for government action to address the problem is a view shared by both the Queensland and Federal Governments and we look forward to working with the insurance industry to develop and implement practical solutions to address the high premium problem.

    “We were extremely heartened to discover that Senator Sinodinos shared our desire to work together to provide relief for people in North Queensland who are struggling with extremely high insurance premiums,” said Premier Newman.

    “Our meeting built on the Newman Government’s 10-point action plan and we reached agreement on a number of actions to be implemented as quickly as possible.”

    These include:

    •               An expanded Australian Government Actuary study into pricing of strata insurance in Northern Australia compared to southern states and a second study into insurance pricing for residential building and contents insurance;

    •               Development of an insurance aggregator for the North Queensland insurance market for strata, home building and contents insurance;

    •               Consideration of allowing foreign insurers access to the North Queensland insurance market;

    •               Reviewing the payment of insurance commissions to strata managers;

    •               Development of a programme engineering assessments for strata properties in North Queensland to identify risks to property that can be mitigated.

    These initiatives will be communicated to over the coming weeks with a view to receiving feedback from the industry and community in addressing the need to rein in costs and ensure more affordable insurance premiums in North Queensland.

    [ENDS]

    Media Contact: Premier's office 3224 4500