NEWS that strata properties in NQ are paying 5 times more for insurance than those in southern cities clearly shows market failure, says Leichhardt MP Warren Entsch.“The Australian Government Actuary’s report is fantastic – we’ve known for a long time through anecdotal evidence we are paying too much, but now we have hard data that finally confirms the massive discrepancy in premiums,” Mr Entsch said. He said the AGA was “spot on” with its findings about the lack of competition in the NQ market, recognising that insurers were either actively avoiding exposure in the market, or if already in the market, were not interested in growing their share. “This is the reason why we’ve seen these obscenely high premiums being quoted. It’s not based on any credible formula for risk, it’s simply the insurance company’s way of encouraging people not to take their policy.“At the same time, people are under huge personal stress at the thought of losing their homes and businesses.