Whitsunday residents vow to fight rising insurance costs

 In the aftermath of Cyclone Yasi Queensland Premier Anna Bligh appealed to the nation’s insurance companies to show compassion. “We need her to do that again now,” says Whitsunday resident Margaret Shaw, who is part of a newly formed committee battling to tackle insurance premium hikes.

 Ms Shaw is joined in her fight by fellow Whitsunday Ratepayers Association members Lester Riley and Dave Tindall, but this group is by no means alone. Private individuals like Robyn Mitchell and Jeff Aquilina have also been involved in searching for a solution.

 Ms Mitchell says currently there is only one insurer dealing with tourist-style developments incorporating blocks of more than 20 units valued at more than $20 million. Since last summer’s disasters insurance premiums on this style of development have increased dramatically – in some cases up to 350 per cent.

 “Whether you’re retired or not, if you’re living in your unit the last thing you can afford is 300 per cent increases in insurance premiums,” Ms Mitchell said.

 “The problem with this particular issue is we don’t have alternatives. We can’t reduce the value of our asset, we can’t not insure and we can’t self-insure – the pitfalls would be huge.”

 Ms Mitchell and the newly formed committee have independently been working on compiling data and talking to insurance brokers and politicians, with the committee executives due to meet with Federal Member for Dawson George Christensen this week.

 Mr Christensen said he was aware that insurance in the Whitsunday region was rapidly becoming a “big issue”.

 “It seems most insurance companies have drawn a line on a map and are refusing to insure apartment buildings north of that line,” Mr Christensen said.

 “We have had reports that only one insurance company is offering body corporate policies in North Queensland and that’s not an ideal situation. Lack of competition opens the door for price gouging and we need to ensure we don’t see a total market failure in North Queensland.”

 Mr Christensen said the Liberal National Coalition in Canberra had called on the ACCC to investigate the insurance industry in North Queensland to ensure that Queenslanders did not fall victim to any such price gouging.

 “The Federal Government also is in discussions with the Insurance Council to consider policies that would increase competition in the North Queensland insurance market,” he said.

 Whitsunday MP Jan Jarratt advised “any groups or individuals with concerns or ideas to make their views known to the federal government enquiry into private insurance.”

 “The level of these rises in some of these premiums is beyond the scope of some of these people to deal with,” Ms Jarratt said.

 “Insurance is a commercial decision based on risk. It is a very complex arena, but what I’m being told is that Body Corporates’ need to have a broker who can look at the most competitive deals. I believe those BC’s and brokers who have put in the hard yards are starting to see some more affordable options on the table,” she said.