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Insurance Business | 03 Nov 2014, 09:28 AM Agree 0
Finance minister gives more details on plans for North Queensland in senate meeting on Friday afternoon.
  • Broker | 03 Nov 2014, 10:18 AM Agree 0
    The cowboy brokers are going to have a field day!!!
    People will start putting together super cheap programs the body corps will buy then won't respond!
    This will make all brokers look bad once again!
  • The Oracle | 03 Nov 2014, 10:28 AM Agree 0
    Memo to Senator Cormann and Treasury Mandarin Quinn: There is absolutely no way any reputable broker will let any Strata Title client be exposed to the vagaries of Unauthorized Foreign Insurers. Full Stop, Not Negotiable, End of Story.
  • Karen | 03 Nov 2014, 10:37 AM Agree 0
    And they said it would never happen! This is the biggest buck pass in recent history.....So to maintain credability our government is going to make us the bad guys. Come on Australia...sign my petition NOW!
  • Karen | 03 Nov 2014, 10:41 AM Agree 0
    And they said it would never happen....This is the biggest buck pass in recent history. Our government is saving face and making us do their dirty work because they don't want to say NO to their constituants.
  • Broker | 03 Nov 2014, 11:04 AM Agree 0
    Seriously!
    I stupidly once had a policy with a Foreign Insurer, and there was a large claim, the UFI decided not to pay and did a runner and guess what we had a PI claim. (That foreign insurer was from Belgium) Wouldn't trust them at all.
  • Ageing Broker | 03 Nov 2014, 11:40 AM Agree 0
    Cormann is playing a dangerous game here and evidently he expects brokers to maintain UFI scrutiny and oversight that he is opting out of.
    This is not the solution to the problem but perhaps he thinks that a dog whistle to the 'authorised' market to get in and provide the required capacity in the North will mean that he can move on. If a UFI wants to write business in Australia then they should become authorised , simple.

  • Just An Observer | 03 Nov 2014, 11:45 AM Agree 0
    Really what can you say. I am a life long Liberal but Conan Cormann has just proven he is well and truly out of his depth. He obviously has no understanding of the insurance industry, nor the nature of the relationships 99% of brokers have with their clients.
    After next serious cyclone one can see the courts filling up with cases where clients will swear on a stack of bibles the broker "NEVER" told them of the dangers of going with an overseas insurer etc. etc.

    Plus with the costs incurred in meeting Australia Compliance standards why would QBE, IAG, Vero and even licenced Foreign insurers like ACE, AIG, Chubb etc. retaining their existing status. Simply move off shore or back to their home country and let the brokers take the responsibility of them meeting Australia standards.
    What is next? Foreign Brokers based in Nigeria being allowed to sell home and contents insurance to Australian Home owners??
    Really Mathias, even your alto ego Conan eventually learnt he had to listen to those around him, not just the evil Wizards in the King's castle.
  • Broker 2 | 03 Nov 2014, 11:49 AM Agree 0
    This is a political stunt aimed at winning votes & brownie points from the uninformed general public.
    When the UFI's don't pay the claims or cannot meet the demands in a catastrophe situation, we will all be "tarred with the same brush".
    The government is happy to pass the buck to the brokers, so we can all look forward to a bashing in the future.
  • Scott | 03 Nov 2014, 12:30 PM Agree 0
    So it goes through an aggregator website that doesn't involve a broker ... then goes through a broker magically when thing inevitably go south?

    Either I'm misunderstanding it, or something doesn't add up.
  • rob | 03 Nov 2014, 12:54 PM Agree 0
    We have several overseas insurers ready to go, just waiting on the government clarification

    at long last, common sense has prevailed
  • Robert Cooper | 03 Nov 2014, 01:06 PM Agree 0
    What is interesting is opening up, not just to North Queensland but the whole of Australia, the use of unauthorised foreign insurers.
    The only Broking firms who can vet carefully these unauthorised foreign insurers are the International Brokers. They usually have market security departments who scrutinise all the makrkets they use. They then can now set up cheap schemes using unknown markets in the USA and Europe. They have the resources to bypass the Australian Insurance market altogether. They cab pressure these markets to offer reduced rates and pay legitimate claims or lose worldwide support from their company.

    The pressure is now on small brokers to compete knowing that the buck will stop with them if a claim goes wrong. Our only hope is for our cluster groups to come up with something to respond with.

    The end result is likely to be that the big International Brokers will benefit and once again small brokers will be hit hard.
  • George | 03 Nov 2014, 01:46 PM Agree 0
    A field day for lawyers to peruse brokers, our P.I cost will be prohibitive as well as deductibles ; another political stunt by a government to look popular and buy votes.
  • DSW | 03 Nov 2014, 03:30 PM Agree 0
    Does it not occur to the Govt and/or associated regulatory authorities that it is the cost of meeting the regulatory requirements set down for Australian Authorised Insurers which dictate the prices charged, including the requirement to maintain higher levels of capital to protect consumers when writing business in high risk regions.

    The Govt and their authorities set the rules and then, when they don't like the outcome, pass some more rules which allow other new entrants (UFI's) to enter the market without ensuring the same level of consumer security and protection is available.

    Once again those who most need the best insurance protection available will be tempted to go with the cheaper insurers only to find that, at the time they next need their insurer the most, they will only receive what they paid for.

    I pity the non-international brokers who will be forced to offer alternative UFI cover without the necessary resources to check their security and will be left "holding Corman's baby". I hope they double check their PI Cover before engaging with the UFI market.

    What a (sick) joke!!!
  • rob | 03 Nov 2014, 08:53 PM Agree 0
    DSW

    I pity those who trusted regulators when HIH failed
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