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MP brands insurance industry an ‘absolute disgrace’

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Insurance Business | 17 Jul 2012, 12:05 AM Agree 0
A federal member in Queensland has unleashed a rant at the industry and is pushing a Bill demanding that insurers that don't offer "affordable" rates in the region be banned from insuring elsewhere in the country.
  • Andrew | 17 Jul 2012, 12:02 PM Agree 0
    Good to see that Mr Entsch is an educated business leader that understands how the insurance industry works.
  • Robert Cooper | 17 Jul 2012, 01:57 PM Agree 0
    This is why the National Party is so out of touch in this country. These conservatives can only come up with socialist solutions. Mr Entsch, the Insurance Industry is a private enterprise system where the Investors want a rate of return and can make decisions about where and how they want to make their money. They are not a charity. If you had any sense as a politician, you would seek to bring in risk mitigation solutions such as improved building codes, better planning laws and location choices. The National's solution is to bring back government owned Insurers who will insure these at a loss to tax payers. Been there done that.
  • Keith Lello | 17 Jul 2012, 04:55 PM Agree 0
    I'm relieved to learn that the Labor Party has not completely monopolised the ability to make stupid statements with little evidence of any thought, research or reason. As a business person Mr. Entsch would know that the only insurance premium relief options for high risk areas are to cross subsidise from less risky areas - a practice likely to result in insurer losing the more profitable parts of their book to competitors - or pricing premiums commensurate to the regional risk. There is no disgrace in running a successful business model and perhaps Warren Entsch should be directing his comments towards the permit and approvals system allowing dwellings to be built in such areas. There is no doubt also that many of the land owners knew of the potential risks when taking up the locations and elected to ignore them. I trust Warren is not advocating having tax payers subsidise insurance premiums in high risk areas?
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