23 October 2014

Initiatives to help address insurance affordability for North Queensland

The Government is delivering on its commitment to assist consumers and increase competition in the North Queensland insurance market.

Following a considered discussion paper process, the Government will put in place a range of initiatives to tackle the high cost of insurance in North Queensland, while also minimising the regulatory burden.

We will establish a comparison website to help consumers to compare home building and home contents insurance products. The site will enable consumers to compare the performance of insurers on price, product features and claims handling complaints.

The Australian Securities and Investments Commission will establish this site by March 2015.

The Government is also boosting competition by clarifying that licensed brokers can sell policies from foreign insurers where they offer consumers a better price.

We are also working closely with the Queensland Government to develop a program of engineering assessments for strata properties in North Queensland. This will improve information available on a building’s susceptibility to weather damage and ways to make properties more resilient.

The Australian Government Actuary is also preparing a report on home insurance pricing. This report will bring to light the extent to which North Queenslanders pay more for their insurance.

With the storm season approaching, we strongly encourage North Queenslanders to check that their level of insurance cover is adequate.