Queensland Property Owners Pay Up to 12 Times More for Insurance Than Southern Neighbours, Senate Inquiry Reveals
A senate inquiry has revealed that residents in certain areas are unfairly burdened with insurance costs that do not align with the risks present in their communities.
The North Queensland Strata Action Group informed a Senate inquiry that property owners in Queensland’s cyclone-prone region are facing insurance premiums that are up to 12 times higher than those in areas near the southern border.
This disparity is worsened by the lack of support from insurers as natural disasters become more frequent and severe. Since 2022, insurance premiums have tripled, adding to the overall cost-of-living crisis.
Residents are paying elevated fees based on risks that may not be applicable to their specific community since risk assessments and pricing are determined for the entire region. For example, despite not experiencing a cyclone since 1918, property owners in Mackay are still charged for that risk.
The Queensland Local Government Association highlighted in its submission that despite significant federal government investments in disaster mitigation in the region, homeowners are still being charged based on outdated risk assessments.
In addition, concerns were raised about the high costs of rebuilding with insurance contractors in comparison to self-insured flood victims in regional NSW, who have reported lower repair expenses.
Insurers like Suncorp have proposed a four-point plan to address the impact of natural disasters in the region, including increased government funding for infrastructure, grants for property owners, improved urban planning, and reduced taxes for property owners with insurance.
According to the Insurance Council of Australia, the 2022 cyclone in south-east Queensland cost insurers $2.3 billion out of a total $7.7 billion damage bill, while the 2022 flooding in NSW cost insurers $5.5 billion, marking it as the country’s most expensive natural disaster to date.
The committee is set to report its findings to the Senate on Nov. 19.
