The cost of insurance in northern Australia will feature in a government white paper before the end of the year.

The paper will become government policy and will address insurance market failure in north Queensland and WA, according to MP Warren Entsch, chairman of the parliamentary committee investigating development of the north.

The committee reported this month and made affordability and availability of insurance key priorities.

It recommends the Northern Territory Government-owned Territory Insurance Office (TIO) should be allowed to expand its coverage outside the NT.

Mr Entsch told insuranceNEWS.com.au there are no complaints about insurance in the NT, unlike in Queensland and WA, where businesses and homeowners say they cannot obtain cover or that soaring premiums have made it unaffordable.

Although rate increases have slowed, his constituents in north Queensland are not seeing rate reductions.

“Maybe there is an opportunity to soften the boundaries between the north of WA and Queensland and the NT, using the Tropic of Capricorn as the new boundary,” Mr Entsch said.

“There might be an opportunity for the TIO.”

Another option is to use funds in the reinsurance terrorism pool, and Mr Entsch expects initiatives to be announced in next year’s federal budget.

“The report certainly highlighted there is an insurance crisis,” he said.