Advocacy groups urge Queensland government to address rising insurance costs

Advocacy groups urge Queensland government to address rising insurance costs | Insurance Business Australia

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Advocacy groups urge Queensland government to address rising insurance costs

Proposed solutions to affordability issue outlined

Insurance News

By
Roxanne Libatique

Consumer advocacy groups, including the Australian Consumers Insurance Lobby Inc (ACIL), Financial Rights Legal Centre, Queensland Consumers Federation, Consumers Federation of Australia, Unit Owners Association of Queensland, and Owners Corporation Network, have collectively urged the Queensland government to address the growing issue of insurance affordability in the state.

These groups are advocating for government intervention to alleviate financial pressures on residents and businesses, promote fairness, and improve financial resilience across the state.

Key insurance affordability issues in Queensland

According to the advocacy groups, residents and businesses in Queensland – particularly those in high-risk areas – are facing significant insurance costs.

The current system places a heavy burden on those least able to afford it, worsening issues related to insurance affordability, availability, and financial resilience.

“Some residents in North Queensland are paying up to 10 times more for their insurance, disproportionately increasing their stamp duty payments, yet recent budget measures have failed to address this critical issue,” said ACIL chair Tyrone Shandiman.

Bob Boundy, secretary/treasurer of Unit Owners Association of Queensland, added: “The exorbitant cost of insurance is affecting the quality of life for unit owners across Queensland. We need decisive action to protect our homes and our financial wellbeing.”

Proposed solutions to insurance unaffordability in Queensland

The advocacy groups outlined recommendations to address insurance unaffordability issues in Queensland:

Removal of stamp duty on insurance: Reducing or eliminating stamp duty on insurance premiums could provide immediate financial relief to consumers and businesses, lowering the overall cost of insurance.
Investment in resilience and mitigation measures: Funding initiatives aimed at resilience and mitigation could help reduce the risk of damage from natural disasters, potentially leading to lower insurance premiums in high-risk areas.

“Insurance unaffordability is becoming widespread across Australia. By its very nature, this issue disproportionately impacts people on lower incomes who tend to occupy a greater proportion of housing in more disaster-prone areas,” said Karen Cox, CEO of Financial Rights Legal Centre, which operates the national Insurance Law Service. “Queenslanders face unique affordability challenges, so we urge the government to take decisive action to help address these issues before even more people lose the ability to protect themselves from risk.”

“Insurance affordability has emerged as a critical concern for consumers across Australia, with Queensland facing its own unique challenges,” said Gerard Brody, chairperson of Consumers Federation of Australia. “We fully support the Queensland government in taking action to improve the affordability and availability of insurance.”

“High insurance costs are a major concern for property owners,” said Karen Stiles, executive director of Owners Corporation Network. “We urge the government to consider reforms that will make insurance more affordable and accessible for everyone.”