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Insurance Business | 20 Oct 2014, 08:11 AM Agree 0
An insurance boss has called for the industry to correct the inadequate pricing of catastrophe exposure for residential strata.
  • John Eden | 20 Oct 2014, 01:46 PM Agree 0
    Pricing on Strata-What rubbish. Premiums on our strata units in Mackay have gone from $30,000 to $110,000 which is unsustainable. I would suggest that this is more than individual households pay. Secondly risk should be attached to the construction date and cyclone rating which it is not. Some strata units ie high rise are not in flood areas and even if there was a storm surge would probably only go through carparks. I would suggest that buildings should be individually rated and premiums adjusted - not the blanket policy applied by over zealous insurers!
  • Robert Cooper | 20 Oct 2014, 02:12 PM Agree 0
    Premiums may be underrated on the East Coast of NSW but certainly not anymore in Queensland, and definitely not in North Queensland. The more severe weather will affect risks all over Australia, but it is up to insurers whether they want to play in that space or not and how competitive they want to be. It is really competition keeping the prices down. For North Queensland they have less markets to access, so the price has gone up considerably. Many would not see these prices as being underrated.
  • Kristy | 20 Oct 2014, 02:46 PM Agree 0
    Is this man in the same country as me? I have watched strata premiums increase by 200% every year for the last 4 years. Why is the insurer now making this the insured's issue when they were the ones under pricing themselves and making the strata market more appealing to the home buyers. They have no-one to blame but themselves and need to realise that we are now in a market that is now in full swing of the GFC. Insurer's need to start realising that they are no longer the only ones who are penny pinching. Gone are the days $30mil + profit per year. Start playing the game like all other markets and stop being so selfish.
  • David | 20 Oct 2014, 04:54 PM Agree 0
    The market is the market, ultimately driven by supply and demand. If an insurer feels risks are under-priced they should simply withdraw their capacity from the market. Zurich Asia profits down by almost 60% last financial year, perhaps this is simply looking for someone to blame?
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