Committee threatens to look at more premiums

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6 February 2012

Insurance premiums could come under further scrutiny, a House of Representatives committee has warned.

The inquiry into strata insurance last week heard the affordability of residential strata title insurance in northern Australia is affecting many people and imposing great financial stress.

Inquiry Chairman, MP Graham Perrett, says while this inquiry is focusing on strata insurance, it has heard about premium increases in other market sectors.

“The [inquiry] committee is aware that there have been increases in other insurance premiums – for example bed and breakfast, farmstay accommodation and others,” Mr Perrett said at last week’s public hearing in Port Douglas.

He said people with insurance concerns not related to strata title insurance should “put these concerns in writing and the committee will accept your correspondence”.

“The committee will be considering how to investigate these broader concerns around insurance premiums.”

Mr Perrett says the committee is looking for solutions to the insurance affordability crisis and will make recommendations to the Federal Government when its report is handed down.

“The report will not contain all the answers, but it will set out to the Government a clear and strong plan of action,” Mr Perrett said.

The inquiry has received 388 submissions to date and the deadline for submissions has now been extended to February 14.

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