Federal MP Warren Entsch is spearheading a drive in Far North Queensland to review insurers’ body corporate practices.

Mr Entsch, MP for the FNQ seat of Leichhardt, says that property-owners are “distraught at massive spikes in their premiums”.

He is proposing a strategy to band together strata property-owners to put pressure on body corporate insurers at renewal.

Zurich Australia has come in for particular attention, with Mr Entsch claiming the company forced others from the market by “undercutting competitors, only to ramp up premiums by as much as 800%”.

But Zurich CEO General Insurance Shane Doyle says in recent years Zurich has paid out more in strata insurance claims than it has received in premiums.

“The cost of doing business in FNQ has also increased dramatically, driven primarily by reinsurance costs,” he told insuranceNEWS.com.au.

He says the company has spoken to Mr Entsch on a “number of occasions” to discuss his concerns.

Strata Community Australia (SCA) is organising meetings in Cairns, Townsville and Airlie Beach for strata property owners to air dissatisfaction with body corporate insurers.

SCA Events Manager Merrelyn Telfer told insuranceNEWS.com.au they are expecting around 400 people at the meetings, which will be addressed by CEO Mark Lever.

Mr Entsch says opposition consumer affairs spokesman Bruce Billson has officially referred Mr Entsch’s submission on strata title insurance in FNQ to the Australian Competition and Consumer Commission (ACCC).

The ACCC has accepted the submission, but Mr Entsch told insuranceNEWS.com.au he is still awaiting confirmation that the commission will act on it.

Mr Billson, Mr Entsch and Federal MP for Dawson George Christensen are also in the process of formulating a submission that can be referred to the Joint Standing Committee on Economics.

Mr Entsch says the submission “is aimed at establishing a bipartisan inquiry into a broad range of issues in the insurance industry, including body corporate matters impacting property owners and potential buyers in FNQ”.

In the meantime he says affected individuals should lodge official complaints with the Insurance Ombudsman.