EMBARGOED UNTIL December 01, 2019 10:00 AM
STRATA LEADERS APPLAUD INSURANCE COUNCIL OF AUSTRALIA IN AGREEING TO INVESTIGATE A REINSURANCE POOL
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1 December, 2019
Attention Queensland Media
STRATA LEADERS APPLAUD INSURANCE COUNCIL OF AUSTRALIA IN AGREEING TO INVESTIGATE A REINSURANCE POOL IN FAR NORTH QLD
LONG-HELD OPPOSITION TO REINSURANCE POOL OVERTURNED IN A BID TO INCREASE INSURANCE AFFORDABILITY AND AVAILABILITY
PEAK STRATA BODY PROPOSES TERRORISUM FUND BE CHANGED INTO CYCLONE REINSURANCE POOL FOR AFFECTED PROPERTIES
There may be some good news on the horizon for thousands of North Queenslanders who have seen their residential insurance premiums go through the roof over the last five years.
Insurers have agreed with Federal Government and Treasury to investigate the feasibility of a reinsurance pool in an unexpected turn of events that strata leaders say brings insurance affordability and availability one step closer for struggling strata communities in far north Queensland.
The peak body for apartments, units, townhouses and other strata titled property in Queensland has praised the Insurance Council of Australia for bringing the insurance industry together.
Strata Community Association (Qld), which has been supportive of a reinsurance pool in its submissions to the Australian Competition and Consumer Commission, says at a time when insurance affordability and availability is reaching crisis point, industry consensus to investigate a reinsurance pool is pleasing.
SCA (Qld) President James Nickless says, “The Insurance Council of Australia and the insurance industry at large has our full support in examining measures that will decrease premiums and encourage insurers to re-enter the market.
“Despite concerns held by some insurers, we are delighted to see that rival insurers in far north Queensland have agreed to cooperate in preliminary work by Government and Treasury to explore a cyclone reinsurance pool.”
In its submissions to the ACCC, SCA (Qld) has reported that insurance affordability and availability in far north Queensland is leaving strata communities exposed, with some members reporting that they are underinsured or worse, uninsured.
Mr Nickless says, “Any measure that will serve to increase the availability of affordable and comprehensive insurance coverage is welcome relief to strata communities who have been between a rock and a hard place for too long.
“These communities are required by law to insure common property, body corporate assets and any multi-unit building for full replacement value. Given this requirement, bodies corporate have been unable to demand a better deal.
“We’re confident a government-backed cyclone reinsurance pool will alleviate these issues in the region and we’re recommending the terrorism fund be changed to a cyclone reinsurance pool.
“We hope Government, Treasury and the insurance industry will embrace and implement a cyclone reinsurance pool to provide protection to the thousands of Queenslanders who live in far north Queensland.”
About Strata Community Association (Qld)
Strata Community Australia (Qld) Limited (SCA Qld) is the peak industry body for Body Corporate and Community Title Management in Queensland. Membership includes body corporate managers, support staff, committee members and suppliers of products and services to the industry. SCA (Qld) members manage property worth an estimated replacement value of $120billion.
There are more than 50,000 community titles schemes with 513,000 community titled lots in Queensland. 43.3% of all new dwelling approvals are expected to be lots in a body corporate scheme. SCA (Qld) proudly fulfils the dual roles of a professional institute and consumer advocate.
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