A lack of communication between the Federal Government and the insurance industry is raising concerns that Canberra is making decisions without a clear understanding of the sector’s issues.

Industry executives have told insuranceNEWS.com.au they are being stymied in their efforts to exchange views with ministers, with calls not being returned and persistent difficulties in communicating with the office of Assistant Treasurer Arthur Sinodinos.

“There are claims the industry won’t talk to the Government, but it’s because the Government won’t take our phone calls,” one industry insider told insuranceNEWS.com.au.

“It’s setting the industry and Government up on a collision course.”

Some industry leaders discussed access problems with Senator Sinodinos before he stood down from his frontbench position earlier this month while the NSW Independent Commission Against Corruption investigates a company he chaired.

His office is responsible for a considerable amount of work affecting insurance, such as the Australian Government Actuary’s forthcoming report into the cost of strata premiums and Treasury research on affordability.

There is also concern about the minister’s plans to develop an insurance aggregator website for north Queensland strata, home building and contents insurance.

Senator Cormann has taken over Senator Sinodinos’ portfolio, but although he is highly regarded by the industry there are concerns he will be preoccupied with the Future of Financial Advice reforms and the sale of Medibank.

“We don’t expect to able to get through to [Senator Cormann] easily, but we have a lot happening, particularly around affordability, and the message is not getting through,” one source said.

A communications blockage is all the more surprising given the expertise that should be available to Senator Sinodinos, who has taken a strong interest in affordability and availability issues in north Queensland.

His Chief of Staff is Paul Giles, a former Insurance Council of Australia GM government and stakeholder relations.

A senior industry executive who is closely connected to the government negotiations says there are “undercurrents” and “friction” at some levels of the relationship but the real problem for insurers is “politicians playing the game hard”.

He says the Government “wants the industry to solve the north Queensland strata problem for it, but that’s not possible”.

“They’re trying to get us to use shareholders’ money to set up an aggregator site,” he told insuranceNEWS.com.au. “They know it won’t work in north Queensland. The only way they’d get us on it would be by legislating.”

A spokesman for Finance Minister and acting Assistant Treasurer Mathias Cormann told insuranceNEWS.com.au “the Government enjoys a very professional and constructive relationship with the general insurance industry”.