Qld insurers accused of price gouging

INSURANCE companies in north Queensland have been accused of "outrageous" price gouging, with premiums going through the roof.

The federal MP for Dawson, George Christensen, says insurance companies have been treating the region as a limitless ATM.

Mr Christensen says his office has been flooded with examples this week of outrageous insurance premium increases.

In one case the premium for a two bedroom home in Mackay leapt from $2642 to $13,616.

In another the premium rose from $1992 to $8133 in a single year for another Mackay home that did not flood in the 2008 "one-in-200-year" rain event.

Examples came from homes, businesses, and farms across the north, including Mackay, the Whitsundays, Bowen, the Burdekin and Townsville, as well as north to Ingham, Cairns, and Port Douglas.

Some of the most dramatic premium increases came from body corporate managers and owners of units and apartments.

"Unit owners are compelled by law to have insurance but some are not able to purchase any - either because the insurance companies won't offer it or because premiums are priced higher than property owners can afford," Mr Christensen said.

"The insurance market in North Queensland has failed and the Gillard Labor government has rejected proposals to fix the problem."

The Insurance Council of Australia said an independent Australian Government Actuary (AGA) report released on October 19 found no evidence of price gouging.

The ICA said the report found the north Queensland market remained competitive, and current market conditions were more likely to attract new insurers to the region than at any time during the past few years.

It said the report also supported evidence that insurers were readjusting their strata insurance prices to cover the underlying technical risks after many years of under-pricing and rising reinsurance costs.

However, Mr Christensen dismissed the report as a "regurgitation of propaganda from the Insurance Council of Australia."

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