A new Australian Government Actuary study into north Queensland strata insurance will contribute to measures aimed at curbing soaring premiums, according to Assistant Treasurer Arthur Sinodinos.

Speaking at the Insurance Council of Australia Regulatory Update seminar in Sydney on Friday, he said the report “will increase transparency around the causes of strata insurance prices in north Queensland over recent years”. 

“It will also be an important part of the Government’s response to putting downward pressure on insurance premiums across the region.”

Senator Sinodinos’ comments have been praised by Federal MP Warren Entsch, whose Leichhardt electorate covers north Queensland.

“Arthur has been here, he’s spoken to people who have been impacted, he actually understands the crisis,” he said. “And now he’s addressing the Insurance Council of Australia – an organisation that’s had its head in the sand for far too long.” 

Senator Sinodinos told the seminar the actuarial study will examine the period from 2005 to 2013 and will be extended to help compare strata pricing across northern Australia and in cities including Adelaide, Sydney and Melbourne.

“The report will consider the causes of premium increases in north Queensland over the eight years and reasons for variations in prices across different geographic areas.” 

The study will expand on a 2012 report by the actuary on strata title insurance in north Queensland. 

The Government also plans to develop an insurance aggregator website for north Queensland strata, home building and contents insurance, as previously reported by insuranceNEWS.com.au. 

“Aggregator sites have led to significant reductions in motor vehicle and other insurance costs in the UK and can reduce search and transaction costs for consumers,” Senator Sinodinos said. “This can allow consumers to make more informed decisions about their insurance purchase.”

Mr Entsch says Senator Sinodinos’ acknowledgement of the “insurance crisis” is very significant.

“This is a national issue for Brisbane, Melbourne, Sydney and Canberra – all those mum and dad investors who have put their life savings into a dream holiday unit in the Whitsundays or Cairns or Port Douglas and have now seen their investment crash. 

“It’s important to acknowledge that no single initiative will address this complex issue,” Mr Entsch says in a statement. “However, all of these actions are a significant step in the right direction. 

“Together with the pressure we’re putting on the insurance companies, and legislative and regulatory measures we’re looking at outlining in the Budget, there’s no doubt that this Government is absolutely committed to putting downward pressure on insurance premiums.”