Discussion Points

1/ In costs should be incurred by the insurance companies. Taking out insurance the highs and lows are meant to be shared equally. The bias is toward the insurance companies picking and choosing where they will insure and what market they can gauge. All whilst continuing to make record profits.

2/ Insurance in FNQ is very unaffordable.  In my situation I am in a 16 unit strata complex post Yasi insurance rose from $6000 per year to currently $30000 per year. This has risen each year despite increasing the premium to $2000 from $500 and despite no other cyclone hitting Cairns. Insurance companies have legislation on their side it is legislated theft. Strata units must be insured by law so it would seem the insurance companies can charge the extreme and still make record profits every year.

3/ The year following Yasi I had to come up with $13000 to cover my strata fees from what was usually $3600 per year. We had to borrow for the insurance hike and start putting away for the next years increased premium. I stopped going out purchasing from the local economy. I like most people did not have $9000 in disposable income. 
In my complex of 16 two people have gone bankrupt as a direct result of strata fee increases.
Unit prices have reduced 30% in my area, I have lost $60000 in the value of my unit combined with $30000 in strata fees in 3 years I have lost $90000. This is not unique to most unit owners in FNQ.
There has been limited building of units and duplexes as a result of high insurance.
All businesses have been affected by higher insurance including the local council who has onset the increases on to property owners.
The economy in my area is depressed only buoyed by tourism but underlying that is high unemployment. If insurance wasn’t as high investment would be made in Cairns.

4/ Only one insurance company would cover my unit complex and not for flood so we are effectively underinsured. Having only one option and no competition has led to market failure and legislated theft of unit owners in Cairns. Post Yasi prices have increased despite no cyclones the insurance company knows it has a captive audience with the legislated backing of the government.

5/ Saying that the FNQ market is more susceptible to cyclones is absurd, it always has been and insurance companies knew it. However, the cost to insurance companies is less than the cost of flooding in SE Queensland or the fires and floods in NSW and VIC. Our market is smaller so our voice is weaker. The lack of competition in the market could be corrected by the government through legislation. We are suffering market failure. The government could legislate that if you want to insure in Australia you have to offer at a competitive rate all of Australia or suffer taxing penalties. Just as the government dictates to cigarette companies they could also dictate to the insurance companies.

6/ I think so and I have used them for car and health insurance. In the case of strata insurance we would only be looking at one company and that really wouldn’t be helpful and a waste of government dollars.

7/ There should be multiple options but in the case of strata there would only be one.

8/ Stata insurance is complicated and generally only purchased through a broker to whom you will generally pay high fees.

9/ A sever lack of competition is the biggest impediment.

10/ I’m sure there would be costs which insurance companies would then put onto the business.

11/ Perhaps the government may see the lack of competition rather than just hearing it from people suffering high insurance costs.

12/ Strata insurance is complex and therefore probably not applicable to this sort of sight.

13/ Moderation and legislation by government to prevent price gauging based on area.

14/ I imagine the government will be begging the insurance companies to participate rather  than legislating that they must.

15/ Strata title is complex and regulated far more than household insurance, it needs to be made simpler.

16/ I think the government will have to beg them. Insurance companies do seem to dictate the terms.

17/ All should be transparent, the comparison should show what people pay in all postcodes. 
18/ Perhaps choice magazine could help.

19/Definitely
20/ By easing the legislative requirements. Strata should be treated no different to housing.

21/ No I don’t think so the government needs to legislate to correct the market failure.

22/ All should be transparent price gauging can be corrected if the government forced insurance companies to provide details as to why prices are different the insurance companies have to justify with any found to be extorting the market fined.

23/ No not unless they have power to fine insurance companies found to be gauging the market. They basically have no powers so it would be a waste.

24/ The government has the legislative power to correct market failure. It surprises me they have not moved to correct this in three years.

25/ The government through legislation could give the power for people incorrectly overcharged based on area to be able to recover costs and penalties civilly this would act as a major deterrent.

26/ The market should be free and people should be able to insure with overseas companies in order to get the best price. It is the lack of competition which has led to this problem.

27/ Prices would go down local insurance would have to be more competitive.

28/ To provide insurance the government would need to establish the insurance company is solvent and makes good on its claims

I am disappointed the government has done nothing via legislation to correct the insurance problem with strata units. There are so many options available re penalties etc. to correct these market failures people are suffering whilst the insurance companies are making record profits even in these so called bad times of natural disasters, the fact they are making these profits exposes them for the ripping off of innocent unit owners. DO SOMETHING LIBERALS NO MORE TALK ACT!