ACCC Report into Northern-Australia Insurance Problems

Extreme weather events have long made insurance a very costly issue for home-owners and Bodies Corporate in Northern Australia. The ACCC were tasked with examining the problem and making recommendations to government.

Home and contents insurance premiums are considerably higher, and have risen faster, in northern Australia.

Average premiums are almost double those in the rest of Australia.

No matter how measured, the cost of home, contents and strata insurance is higher for consumers living in northern Australia. In 2018–19, the average premium for combined home and contents insurance across northern Australia was approximately $2,500, almost double that for the rest of Australia ($1,400). For home (only) insurance, average premiums were around $1,900, again around double the rest of Australia ($900). For contents (only) insurance, the northern Australian average of

$600 also exceeded the average for the rest of Australia ($400). The higher average excess levels in northern Australia make the premium differences between northern Australia and the rest of Australia even more stark.

There are about 20 categories of recommendations made (one of which is to prohibit commissions being paid to Strata Managers by insurance companies or brokers)

You can read the full ACCC Report order here.