Over recent years, communities such as St George, Charleville, and Roma have experienced significant increases in insurance costs, with some premiums rising by as much as 500%. This escalation has placed a considerable financial burden on property owners and local enterprises, prompting councils to seek alternative solutions.
The proposed community insurance mutual would operate as a member-owned organisation, pooling resources to offer coverage that reflects the specific needs and risk profiles of the region. By focusing on localised risk assessment and management, the mutual aims to deliver more equitable premiums and comprehensive coverage options.
One of the key factors influencing insurance costs in these areas is the perceived risk of natural disasters, particularly flooding. Despite the construction of flood levees designed to protect towns from inundation, residents have reported that these mitigation measures have not led to corresponding reductions in insurance premiums. This disconnect has been a point of contention between local councils and the Insurance Council of Australia (ICA).
A spokesperson for the ICA stated that risk reduction measures, such as levees, are considered when pricing premiums. However, they also noted that insurers rely on comprehensive risk data to accurately price policies and are actively supporting local councils in conducting up-to-date flood studies and implementing appropriate risk reduction measures.
The establishment of a community insurance mutual represents a proactive approach by South-West Queensland councils to address the challenges posed by rising insurance costs. By taking control of their insurance needs, these communities hope to achieve more sustainable and affordable coverage, ensuring the continued resilience and prosperity of the region.
