Syna Hickmott (pictured), insurance manager at MAI Strata, has urged strata property owners in North and Central Queensland to leverage new federal and state initiatives that could reduce insurance premiums and fund cyclone preparedness works.
Following regulatory updates to the Cyclone Reinsurance Pool effective April 1, strata buildings in eligible regions can now receive insurance premium reductions when undertaking approved mitigation activities. These include structural reinforcements such as storm-resistant windows, upgraded roofing, and compliant external doors.
Commenting on the changes for strata properties, Hickmott said the reforms offer a practical route to both reduce those costs and improve building resilience to cyclones.
“This is exciting news for Queensland strata owners. Many buildings are facing skyrocketing insurance costs, and this initiative provides a clear financial incentive to strengthen their properties. Stronger buildings mean fewer claims, and fewer claims mean lower premiums,” she said.
The changes coincide with the launch of the $40 million Strata Resilience Program, jointly supported by the federal government and Queensland government.
The program provides grants covering up to 75% of the costs for cyclone mitigation measures, with limits set at $15,000 per residential lot and $150,000 per strata scheme. Funding is shared across all stakeholders:
Hickmott noted that past programs of this nature have stimulated regional employment through demand for local contractors and building services.
“The Strata Resilience Program will help reduce the risks of cyclone damage, making buildings safer while also putting downward pressure on insurance premiums,” she said. “The program is also expected to boost regional employment. Similar programs have seen more than 400 businesses engaged, the majority of which were locally sourced.”
She advised bodies corporate to begin the upgrade process promptly and consult with their insurers about documentation requirements. She also advised policyholders to question how savings from the reinsurance pool are passed on.
These moves are part of a broader effort to address rising insurance costs in high-risk cyclone zones, where premiums can be up to three times higher than in lower-risk parts of Australia.
Last year, the Insurance Council of Australia (ICA) released a policy report outlining a framework for longer-term reform in the strata insurance sector.
The report presented 17 proposals focused on improving affordability, strengthening regulatory oversight, and embedding climate resilience into construction and management practices.
The Australian Consumers Insurance Lobby (ACIL) also submitted its own proposal to the federal government, urging it to consider reallocating any future surplus from the Cyclone Reinsurance Pool toward premium relief and resilience projects in cyclone-affected communities.
ACIL’s suggested approach includes using surplus funds to reduce premiums, offering targeted discounts in areas where resilience measures have been implemented, and funding further upgrades such as structural strengthening and debris protection in cyclone-prone areas.
