Federal opposition emergency management spokesperson David Littleproud has asked the competition regulator to investigate premiums in Queensland’s southwest as prices soar despite mitigation work.

The former Nationals leader says increases are disproportionate to statewide averages when there have been no community-wide flood claims in towns where mitigation projects were delivered.

“It is vital that this issue is thoroughly looked at,” he says in a letter to the Australian Competition and Consumer Commission. “I do not want to have a scenario where insurance companies are potentially utilising the lack of competition in this rural and remote part of Queensland to reinforce the premium disparities in these impacted communities compared to the rest of the state.”

A group of regional local governments – encompassing St George, Roma and Charleville – are exploring a mutual option after meetings with insurers on price increases proved unsatisfactory.

Mr Littleproud, whose Maranoa electorate spans the region, told insuranceNEWS.com.au the industry cannot say what changed to drive price increases when projects have prevented claims, and as the industry presses for more federal mitigation funding.

“Why would we, when mitigation money’s been spent and then you ignore it anyway,” he said.

Mr Littleproud – who was emergency management minister when the Royal Commission into National Natural Disaster Arrangements was held in 2020 – says the industry has not delivered on that inquiry’s recommendation for clarity on individual mitigation actions insurers will recognise when setting premiums. 

“They have ducked and weaved it, and governments of all persuasions have allowed them to get away with it,” he said.

Mr Littleproud’s letter says residents in southwest Queensland “deserve fairness, transparency and accountability” on the data informing premium calculations.

Insurance Council of Australia CEO Andrew Hall said earlier this year that surging home building and repair costs particularly affected regional areas, and mitigation projects were still falling short of levels needed in some areas when it came to less frequent but more severe floods.

An ACCC spokesperson says the commission does not generally comment on reports or complaints received, or potential investigations.

It typically has a limited direct role in general insurance, which is mainly overseen by the Australian Securities and Investments Commission and the Australian Prudential Regulation Authority, and it does not regulate insurance prices, the spokesperson says.

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