The Local Government Association of Queensland (LGAQ) is today urging the Federal Government to set up a national reinsurance pool before the next disaster season to help cut the cost of soaring premiums in the state.

The peak body, which represents 77 councils, says the measure is needed to keep insurance affordable and prevent Queensland residents from carrying an “unfair burden”.

The LGAQ says the recent Australian Competition and Consumer Commission (ACCC) report shows premiums have risen 178% in northern Australia in the last decade, compared to 52% in the rest of the country.

It says the terrorism pool shows that such schemes can work and the Commonwealth should “follow that precedent and establish a similar arrangement for insurance in northern Australia”.

“More than 62,000 properties in North Queensland are currently uninsured, with more than 95% of those uninsured property owners citing cost as a reason, the ACCC found,” LGAQ President and Sunshine Coast Council Mayor Mark Jamieson said.

“This is just simply unacceptable in a state as highly vulnerable to natural disasters as Queensland.

“Our member councils want a reinsurance pool established to help reduce those costs so their communities are not unfairly burdened, and we support their call.

“We urge the Federal Government to work with the councils as leaders of their communities to ensure an effective scheme is implemented before the next disaster season.”

Whitsunday Regional Council Mayor Andrew Willcox says he is frustrated because he believes the ACCC recommendations do not go far enough.

As insuranceNEWS.com.au has reported, the ACCC does not recommend a reinsurance pool, instead favouring direct subsidies if governments choose to intervene.

“It is not just homeowners who are struggling with high premiums, but also our tourism accommodation and marine operators face similar prohibitive expenses,” Mr Willcox said.

“Our tourism stakeholders are struggling to reduce their risk and keep premiums down because of Federal and State government policies.

“We are advocating for the Federal Government to underwrite cyclone insurance for North Queensland to bring our premiums in line with the rest of Australia.

“Everyone is happy to put their hands out for a share of our region’s huge mining royalties, food from our horticulture and meat from our graziers, so it is only fair we get some financial relief to protect our key industries from financial stress.

“It is really difficult for the people from the Whitsundays and north Queensland who are paying so much insurance so we are calling on the Commonwealth to help us develop the north.

“Don’t send our businesses and our residents to the wall with cost prohibitive insurance premiums. It’s just not fair.”