Federal Treasury is investigating whether insurers should establish an aggregator site comparing prices for home and contents cover and strata insurance in north Queensland.

Assistant Treasurer Arthur Sinodinos revealed in December that the department had been directed to help develop a website to compare insurance pricing.

insuranceNEWS.com.au understands Treasury is now preparing a paper suggesting insurers establish and maintain the site ­– a proposal likely to draw industry resistance.

The cost of insurance in north Queensland has jumped since 2011 and some insurers have withdrawn from the region, leading to problems with affordability and availability.

The Australian Government Actuary last year found the region’s premiums had been underpriced for years and had tripled since 2007 as insurers responded to losses.

The actuary is now conducting another study comparing north Queensland strata with prices in the rest of the country, and is also working on a review of home and contents pricing in the region.

Senator Sinodinos told a Cairns radio station in December that aggregator sites have led to significant reductions in motor vehicle and other insurance costs in Britain.

He and Queensland Premier Campbell Newman say the federal and state governments will look at attracting foreign insurers to the market, reviewing insurance commission payments to strata managers and introducing a program of engineering assessments to help property managers mitigate risk.

The Federal Government is examining insurance affordability as part of its policy to develop northern Australia.