Strata Insurance Update
SCA has taken the lead in finding a solution to the crisis in strata insurance in cyclone-prone areas of northern Queensland and Western Australia. There has been a Federal Government review and parliamentary inquiry. Natural Disaster Insurance Review In November 2011 the Federal Government released the report of the Natural Disaster Insurance Review. The Review, originally set up after the Brisbane floods to look at the lack of flood coverage, endorsed SCA's position that assistance to households in high risk areas should also be available to body corporates.
Also in line with SCA's submission, it recommended the creation of a government reinsurance facility to help insurers provide affordable flood cover. More importantly, it also accepted SCA's arguments that the same issues of insurance market failure were causing a crisis in affordability and coverage for strata communities in cyclone-prone areas of the north. It recommended that the same reinsurance facility be made open to the strata sector in the north.