❓ A WA parliamentary question addresses strata insurance affordability in northern WA following natural disasters, referencing a federal report and seeking state government action on stamp duties, risk assessment, competition, consumer resources, and strata title law review. The government acknowledges the issues but defers to Commonwealth responsibility and the need for further research.
AnsweredQoN 7913Legislative Assembly
QuestionView source ↗
(1) What steps will the State Government take to immediately adopt the relevant recommendations contained in the federal Parliamentary report, entitled
In the Wake of Disasters Volume Two: The Affordability of Residential Strata Insurance
, in reference to residential accommodation insurance issues following natural disasters?
(2) Will the Government initiate a moratorium on stamp duties paid on strata insurance premiums north of the Tropic of Capricorn for the 2012–2013 financial year and, if not, why not?
(3) With particular reference to strata title insurance in the Pilbara and the absence of real competition amongst housing insurance providers for the Pilbara, will the Government:
(a) investigate the risk assessment methodologies used by insurance companies to price risk for strata insurance coverage;
(b) investigate the reasons for the lack of competition in the strata title insurance industry in the Pilbara and the North West, and take appropriate action as required;
(c) investigate any improper or anti-competitive behaviour taking place in the negotiation of strata insurance via managers and brokers, and take appropriate action if required;
(d) improve resources available to consumers to better equip them in the management of strata title affairs; and
(e) conduct a comprehensive review of strata title laws and regulations to increase flexibility in the choice of insurance arrangements for consumers and increase transparency in the disclosure of commissions and fees and, if not, why not?
In the Wake of Disasters Volume Two: The Affordability of Residential Strata Insurance
, in reference to residential accommodation insurance issues following natural disasters?
(2) Will the Government initiate a moratorium on stamp duties paid on strata insurance premiums north of the Tropic of Capricorn for the 2012–2013 financial year and, if not, why not?
(3) With particular reference to strata title insurance in the Pilbara and the absence of real competition amongst housing insurance providers for the Pilbara, will the Government:
(a) investigate the risk assessment methodologies used by insurance companies to price risk for strata insurance coverage;
(b) investigate the reasons for the lack of competition in the strata title insurance industry in the Pilbara and the North West, and take appropriate action as required;
(c) investigate any improper or anti-competitive behaviour taking place in the negotiation of strata insurance via managers and brokers, and take appropriate action if required;
(d) improve resources available to consumers to better equip them in the management of strata title affairs; and
(e) conduct a comprehensive review of strata title laws and regulations to increase flexibility in the choice of insurance arrangements for consumers and increase transparency in the disclosure of commissions and fees and, if not, why not?
AnswerView source ↗
Answered
9 August 2012
Responded by
Minister for Regional Development
Response time
86 days
(1) The State Government is aware of the Federal Parliamentary Report entitled In the Wake of Disasters Volume 11: The Affordability of Residential Strata Insurance, tabled 21 March 2012. The Federal Government is responsible for insurance regulation under the Insurance Act, the Insurance Contracts Act and competition and consumer regulation under the Competition and Consumer Act; however it has not as yet commented as to whether it intends to implement any or all of the Report's nine recommendations. The final recommendation in the report is that the Australian Government outline the plan of reforms it will undertake in conjunction with State and Territory governments before 1 December 2012. I understand that no request has been made to the WA State Government to participate in such a plan at this time.
(2) The Commonwealth report recommends that the Queensland government initiate a moratorium on stamp duties paid on strata insurance premiums north of the Tropic of Capricorn, this recommendation has not been accepted by the Commonwealth nor implemented by the Queensland State Government. My understanding is that no such recommendation has been provided to the WA State Government.
(3) (a-e) The State Government is aware that above the 26
th
parallel in WA insurance prices, in general, have risen significantly across all insurance types with increases in residential strata title mimicking those seen in Queensland over the past few years. Additionally we are aware that a number of insurance brokers have withdrawn from the northwest, reducing competition in the insurance market. The State Government's area of influence however is confined to strata title legislation, building regulations and land use planning regulations. As recommended in the Commonwealth strata insurance report, government intervention would require a combined State and Commonwealth approach to adequately address the problem. The Report also indicates that substantial further research is required before government could responsibly determine the legislative changes that would be required at both State and Commonwealth levels.
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(2) The Commonwealth report recommends that the Queensland government initiate a moratorium on stamp duties paid on strata insurance premiums north of the Tropic of Capricorn, this recommendation has not been accepted by the Commonwealth nor implemented by the Queensland State Government. My understanding is that no such recommendation has been provided to the WA State Government.
(3) (a-e) The State Government is aware that above the 26
th
parallel in WA insurance prices, in general, have risen significantly across all insurance types with increases in residential strata title mimicking those seen in Queensland over the past few years. Additionally we are aware that a number of insurance brokers have withdrawn from the northwest, reducing competition in the insurance market. The State Government's area of influence however is confined to strata title legislation, building regulations and land use planning regulations. As recommended in the Commonwealth strata insurance report, government intervention would require a combined State and Commonwealth approach to adequately address the problem. The Report also indicates that substantial further research is required before government could responsibly determine the legislative changes that would be required at both State and Commonwealth levels.
Notice: This document is created or edited using unregistered or evaluation copy of rtLib valid for testing or development purposes only. To use it for productive or any other purposes please register it. You may purchase the license on
http://www.rtlib.com
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