FEDERAL MP Warren Entsch has welcomed the Insurance Council of Australia’s decision to embark on a research project aimed at helping better understand and assess the risk for strata properties.
“It’s a major step forward in that the ICA is now acknowledging there is a problem, after being in a state of denial for the last 12-18 months,” Mr Entsch said.
The ICA has stated in its media release that the research to be conducted by James Cook University would “help communities, government and insurers to understand the impact cyclones and other extreme weather has on individual properties”.
“I also hope that by assessing past claims, and comparing them against building standards since Cyclone Rating building codes were introduced, insurers will gain a better understanding of risk in Far North Queensland,” Mr Entsch commented.
The Leichhardt MP cautioned that the project should look further than just strata title insurance, given that the “cancer” of extreme price hikes and/or lack of availability has now spread across small business, residential, rural, bed and breakfast and commercial properties.
“And what we don’t need is yet another report that either passes the buck or marginalises the impacts on property owners in Northern Queensland and Australia,” Mr Entsch said. “The ICA must act on the findings, and they must act with a sense of urgency.”
Mr Entsch will meet with Shadow Assistance Treasurer Senator Mathias Cormann and Dawson MP George Christensen this Thursday, November 29th. The trio will examine the various initiatives that have been brought to their attention in recent months, which can be put forward in a policy context to address this crisis.