Insurance Council invites you to share your insurance experiences and insights.
02/11/2018
Insurance Council of Australia invites you to share your insurance experiences and insights.
The Insurance Council of Australia (ICA) is hosting 11 community insurance forums in November for communities between Cairns and Bundaberg.
The public meetings will provide an opportunity for both home owners and small businesses to share their insurance experiences and insights with industry representatives, so they can better understand the issues and pressures being experienced locally. Local government representatives and insurance brokers will attend each session.
The free community forums will cover:
How local mitigation measures can reduce insurance costs
Local issues driving insurance premiums
How to and claims difficultiesa void underinsurance
James Cook University (as the independent body) will be providing an update on the North Queensland Strata Title Inspection Program;
The North Queensland Strata Title Inspection Program is a three year project that is the development and carrying out of an inspection and assessment program for Body Corporate properties in North Queensland.
It will improve the information available to those Body Corporates about a properties susceptibility to weather damage and ways to make properties more resilient.
Dates and times: Cairns, Wednesday, November 7, 6-7.30pm
"It is twice as expensive to insure in parts of Australia’s north, compared to the south. Insurers have never shied away from this fact, or the factors that cause it. Discussions usually focus only on the risks. The north is more exposed to disasters (flood & cyclone) than other parts of the country.
However, much less talked about, are the factors in the north that make claims (eg, repairing a house) more costly when they occur. The north does not have the same infrastructure and services compared to the south. People in the north pay more for fuel, electricity, trades & services. Ask them. These differences can make it more expensive to build and repair in the region.
How much? This image shows building cost differences (for the same home) around Australia. Building in the north can be up to 42% more expensive. The increased cost of repairs (claims) becomes an additional core underwriting consideration for most insurers who can afford to operate in the north, forcing premiums higher.
Whilst risk mitigation will help to reduce premiums in the north, the solutions must also reduce the cost of operating in the north, by improving infrastructure and services. Contact ICA for more information."
This raises questions:
Is it true that building costs in Cairns is 22% higher than in Brisbane?
Is it true that there are more claims and risk in the North, than in the South from storms and fires?
Should risk and costs be the reason for an increase in premiums by 60% or more over the last few years?
Has local mitigation efforts reduced premiums?
Are you forced to underinsure?
Has the service from your insurance provider improved?
What claim difficulties hace you experienced?
How may the ICA forums impact on the ACCC Northern Australia Insurance Inquiry, that is still underway?
The ACCC Northern Australia Insurance Inquiry released initial findings on Friday 8 June 2018. It has heard from Northern Australians who have expressed frustration, confusion and anxiety about the affordability and availability of insurance. People say they are acting to lower their premiums, for example by shopping around and raising their excesses, but consider there is little choice, especially in strata insurance markets and regional towns. The compulsion to insure, whether by law for strata properties or a condition of a mortgage imposed by a lender, was also a theme of concern.
The ACCC report confirms the ACCC agree that eight main insurers currently supply home and contents insurance under 45 brands throughout northern Australia, but the number of brands used, make it look like there are more suppliers than there actually is. They also report that while northern Australia makes up only 5 per cent of the number of policies in Australia, it accounts for about 10 per cent of premium revenue. Between 2007 to 2017, average home and contents premiums, have increased by between 23 and 67 per cent in northern Australia, and by 16 per cent in the rest of Australia. During the same period, strata insurance premiums rose by between 60 and 80 per cent in north Queensland.
The ACCC states that in 2016–17, the average annual home and contents premium in northern Australia was $2000, which is about double the average for the rest of Australia. Strata insurance premiums in northern Australia were more than double the premiums in the rest of Australia. Premiums for combined home and contents insurance in northern Australia can vary between insurers by as much as $3.40 per $1000 insured, compared to $0.90 per $1000 insured in the rest of Australia.
PLEASE ATTEND A FORUM. RAISE THESE QUESTIONS & OTHERS. HAVE YOUR SAY.
