Released 5 January 2012



The surging cost of strata insurance — particularly in northern Australia — has prompted the Federal Government to launch an investigation into the issue.     

The investigation is part of the new terms of reference for the House of Representatives Standing Committee on Social Policy and Legal Affairs’ broader inquiry into insurance claims processing.

The inquiry was launched to investigate the insurance industry's response to the 2010/11 extreme weather events.

"As I've looked more closely at insurance issues in Queensland, I've become aware the affordability of residential strata insurance has become an increasingly serious issue now that many people are renewing their strata title insurance policies,” assistant Treasurer Bill Shorten said.

“In particular I've been concerned about the news coming out of cities and towns like Cairns, Townsville, Port Douglas and others in the region, where anecdotal evidence suggests residential strata insurance is becoming an increasing issue.”

Chair of the Committee, Graham Perrett MP, said it made sense for the inquiry to add strata title to its wider terms of reference.

"This is an issue that cuts across areas of Commonwealth, state and local government responsibility, which means that action will be needed at all levels of government," Mr Perrett said.

For more information about the inquiry, the public hearings and/or for making a submission, you can visit www.aph.gov.au/strata or email to spla.reps@aph.gov.au