The Insurance Council of Australia (ICA) has repeated its opposition to government intervention in the north Queensland insurance market after Federal MP George Christensen supported linking insurance licensing to an obligation to provide cover in the region.

Spokesman Campbell Fuller told insuranceNEWS.com.au that government intervention “would distort a properly functioning insurance market and is not necessary”.

“Insurance is readily and competitively available in northern Australia and is risk-rated.”

Mr Christensen told Federal Parliament last week that a “crisis point” has been reached in the region and he supports a Greater Whitsunday Alliance proposal that would require insurers to have a mandated percentage of premiums and policies in northern Australia.

“This would push insurers back into the market and provide competition, which would then lead to affordability,” he said.

“We can work with insurers to set the targets and ensure that they bring competitive insurance policy pricing back into these areas.”

The Australian Competition and Consumer Commission is inquiring into insurance issues in the north and recently called for submissions on its latest update.

Mr Christensen says he has heard that Australian insurers are not willing to offer new policies to strata title apartments or commercial hotels in North Queensland.

“In fact, in many cases, the only insurer willing to offer any coverage is Lloyd's of London, and usually at unaffordable premiums. In some cases, there is no insurer willing to offer a policy at any price.

“It doesn’t stop at hotels and strata titles, either. Other households are also being severely affected by increasing premiums in the north.”

Mr Christensen, a Liberal National Party member who has been a vocal critic of insurers, represents the Dawson electorate, which includes the Proserpine and Airlie Beach areas hit by Cyclone Debbie two years ago.

ICA says older buildings in high-risk areas that may have poor resilience to extreme weather are typically allocated higher premiums than newer, better-built structures, while properties mainly used for short-term holiday rentals typically pay more compared to owner-occupied premises.