QLD strata insurance a trillion dollar rort

We often read in the local papers that Townsville Public Liability Insurance is unaffordable, which inflicts economic damage that impede local community security and development in North Queensland (NQ).
• “The economic purpose of Public Liability (PL) Insurance helps to protect you if you have a risk to become liable to pay compensation or legal settlements for injury to third parties, or damage to their property, during your work”.
We understand that insurance companies argue any claim to be paid.
How is the PL cover value amount established? What risks? what controls? what occurrences?
• Qld Bodies Corporate strata apartment communities must have $10 million PL cover.
• Townsville City council cites $20 million PL cover for Horseshoe Bay water sports activities and a Fish Park in Kelso requires similar.
• The Gold Coast council commercial business arrangements PL cover is only $10 million…
• The Great Barrier Reef cites $20 million PL cover for Barrier Reef commercial activities.
• Some Townsville Bodies Corporate are being quoted $13,000 for $10 million PL cover.
In the above, what evidence was used to establish such cover amounts? What was and where are the tabled PL claims history evidence to justify the cover amounts so specified?
APRA1. our Australian federal regulator of insurance financials publishes GL insurance statistics on the APRA website. At Sept 2021 some 9.951 million PL policies were sold for $3.141 billion, at an average national price of $316 dollars per policy.
The APRA web site reports the national aggregated claims made were $2.373 billion providing the insurers with a massive 25% ($768 million) gross profit that can be harvested from the Australian consumers each year.
APRA say they cannot break down their aggregated claims data sets as insurers only have to report national “aggregated” data. This implies there is no post code “granular” PL statistics for Townsville of the number of policies sold and the number of claims made. Therefore, APRA, our Politicians and Economic regulators have no visibility nor management access to the damaged local PL economy.

APRA does not, will not provide the number of claims and total PL “liability” exposure coverage to the Australian public on its statistics website. This unaccountable reporting is allowing APRA to deny consumer access to understanding this secretive APRA regulated PL market. APRA does not report average claim size. Yet if we assume 1% of the 9.951 million policies purchased make a claim. Then the average PL claim amount would be $23,846 for 2021. APRA should report this amount by post code to fulfil its role of being a useful public servant to the Australian PL insured. If APRA does not know, then our NQ Politicians do not know. We think it is APRA’s job is to know and be able to report PL specific claims and premiums information to Post Code level to ensure visible ‘granular” fiduciary management of our PL insurance industry exits.
Public Liability Cover is oversold and beyond value to the Australian economy. If all 9.951 million policies are sold with $10 million PL cover, that indicates some $99.51 trillion dollars of liability cover is sold in this country annually, well beyond the economic value for the nation to ever use. Our Productivity Commission should investigate this huge drain of community funds that are wasted on products sold for amounts and liabilities’ which are “not in the best interests” of the consumer. Does APRA have any idea if Australians are paying too much for wasteful PL insurance?
The Qld BCCM2 insurance regulations prescribe a PL insurance of $10 million is compulsory for every strata building. We believe the BCCM currently witness, tolerate and endorse that the NQ strata insurance supply participants are inflating, flogging and coercing additional PL cover well beyond the strata consumers best interests. Our BCCM fails to enforce and outlaw these rogue PL products.
Strata insurance policies do not disclose the price of the PL cover to strata consumers. The PL policy price is either comingled, hidden or disguised with other insurance products and presented in a single bundled lump sum combo homogenised tax invoice, thus avoiding honest visible price disclosure which is not in the best interests of the strata consumers.
Double Dipping: We find from the vast numbers of inspected Townsville strata tax invoices that the average strata PL insurance cover is $22 million, 200% more than the stipulated BCCM PL insurance regulations. Many lot owners pay duplicated PL insurance. They pay for both Private Lot and Common Property PL insurance. We believe more than 90% of Townsville strata PL policies are non-compliant with the BCCM Insurance regulations. Our BCCM is aware of these occurrences and remains silent.
Doing nothing, The BCCM in remaining silent, and thus endorsing this non-compliant PL insurance supply. Which in turn benefits the State with additional stamp duty and benefits the Federals with more GST tax collections. The silence also immensely benefits and encourages the huge 20% PL sales commission participants who aggressively supply these non-compliant inflated PL insurance products.
Our Qld BCCM is not acting in the best interests of her 50,000 Queensland Bodies Corporate community insurances and economy.