The federal government should consider the adequacy of the insurance disclosure regime for strata managers and brokers, Labor members of a Senate committee inquiry say. 

Senators Tony Sheldon and Nita Green also propose that state and territory governments “should review governance in strata schemes with a view to ensuring best practices which protect consumers and facilitate greater levels of transparency and accountability for strata residents”.

The Select Committee on the Impact of Climate Risk on Insurance Premiums and Availability has made eight recommendations in its final report.

The Labor participants added a ninth on strata issues in an additional comments section.

“Throughout the inquiry, the committee heard about the impact that the high cost of strata fees and commissions is having on consumers,” they say.

“Unfortunately, this was not reflected in the committee’s recommendations.”

The main body of the report notes evidence about problems obtaining strata cover, particularly in Far North Queensland, and the impact of intermediary fees or commissions. But it makes no specific proposals.

Its eight recommendations include establishing a publicly accessible national disaster risk map and database, increasing the federal disaster ready fund to $400 million a year, and that the government push through ministerial councils to end insurance taxes and stop development in high-risk areas.

The inquiry recommends the Treasurer issue a direction for the ACCC to monitor premiums and report quarterly, and says insurance companies should have to provide policyholders with “a sufficient breakdown and explanation of premium costs”, including details of price changes in response to mitigation.

The five-member committee, chaired by Greens senator Mehreen Faruqi, was divided on recommendations to expand the cyclone reinsurance pool to all natural disasters and for Treasury to develop options for levies on coal and gas companies to fund mitigation and affordability measures.

The National Insurance Brokers Association says the eight recommendations revolve around policy, industry, transparency and resilience-building efforts, and follow the recently released House of Representatives committee report on the 2022 floods.

“NIBA is committed to ensuring that insurance remains affordable and accessible for all Australians,” it says. “NIBA looks forward to working closely with the government, industry and other key stakeholders around the relevant recommendations.”