Media Release

KAP Leader and Federal Member for Kennedy Bob Katter has called two public meetings to address the issue of insurance premiums as North Queensland residents struggle under the burden of skyrocketing premiums.

Mr Katter has announced public meetings in Innisfail and Edmonton to send a message to the government that North Queenslanders are being unfairly burdened and to listen to potential solutions to the issue of rising insurance premiums.

This call for action comes after several Kennedy constituents have contacted Mr Katter to discuss the issue.

One of Mr Katter’s constituents; insurance broker Shannon Siebel from Mission Beach told Mr Katter the costs for insurance premiums in the area had risen from $792 in 2007 to $3714 currently.

“This is a 300 per cent increase in some cases and there is clearly an imbalance when compared to other areas of Queensland,” Mr Katter said.

Mr Katter is putting forward three potential solutions and believes feedback at the public meetings will provide further options to tackle the issue.

The three potential solutions being proposed by Mr Katter are:

1. Insurance companies to reassess premiums in North Queensland - after recent North Queensland cyclones. Mr Katter believes premiums should be much lower as houses are now built to cyclone standards and have withstood recent cyclone events;
2. Re-introduce a State Government Insurance Company that would provide home owners with reasonably priced insurance – similar to what Theodore introduced in Queensland and was sold off by the Borbidge Government; or
3. Extend the modified Health Insurance approach where a portion of each person’s salary is deducted to cover dwellings.

Mr Katter looks forward to hearing from the community members on what they believe are potential solutions and has stated that currently his preference is for the re-introduction of a State Government Insurance Company; a former government service that was privatised and merged with Suncorp Metway in 1996.

“In the 1920’s there was a dreadful cyclone that wiped Innisfail out completely. Following this the Theodore government introduced a state government insurance agency.

“The current government would stand to make immense profit out of a state owned insurance company.

"Look at the profit and loss statement of Suncorp today; their insurance services took in $883 million profit in 2013 and $1010 million profit in 2014.

“The company who bought these assets is now charging whatever premiums they want, almost 400 per cent more than what the state owned service was able to offer,” Mr Katter said.

Mr Katter has been pushing for immediate action to address the skyrocketing insurance premiums.

This has included a Question With Notice to the Treasurer in the Parliament; a Question Without Notice; formal correspondence on the issue to the Assistant Treasurer and Minister for Finance and correspondence to the Insurance Council of Australia requesting the Council visit North Queensland to hear first-hand from concerned residents.

Further details of the public meetings in Edmonton and Innisfail will be released in the near future and Mr Katter is urging all concerned residents to attend as a show of North Queensland solidarity on the issue.