THE Federal Government could provide seed money to help establish a locally-owned competitor insurer, similar to a mutual society, to drive down the cost of premiums. Leichhardt MP Warren Entsch said the model would work like mutual societies or credit unions, where the policyholders were also the shareholders. “There is government money there to support the establishment of an alternative, affordable, accessible type of insurance for northern Australia,” he said. “From what I can understand, and by talking to those looking at establishing an alternative, there is more than enough funding to do it. “We really need a northern Australia mutual.” But Mr Entsch said there were details to be ironed out before the details of the proposal would be made public. “I’m waiting on the model and the proposal to come forward but I’m encouraging those who are proposing to move sooner rather than later,” he said. “I have been talking to individual groups looking at doing it.” Insurance advocate Margaret Shaw said a community-owned insurance company would be strongly supported in the Far North. “I would definitely join that,” she said. “Any insurance company offering competitively priced premiums would be very popular. “They could get a majority of the insurance market in north Queensland, especially since so many people are underinsured or not insured at all.” Ms Shaw said a locally based insurer would be able to assess risk more accurately. “It’s a fantastic idea because people in the north understand our own problems,” she said. “Buildings in the north are built to cyclone standards and they are much less likely to lose a roof than (those) in places like Brisbane.” Homeowners in north Queensland have been hit hard by the skyrocketing cost of insurance, which has increased by between 200 per cent and 800 per cent since cyclone Yasi in 2011. Units and apartments have been particularly hard hit. Mr Entsch said the region would continue to pay exorbitant rates of insurance unless there was more competition. “The biggest single problem we have is that the insurance market up here is like having the choice between Woolworths and Coles,” he said. “We have two big multinational conglomerates and no other real competition. They don’t care about competing against each other and its homeowners who get screwed. “These companies are still making big money.” Mr Entsch said he was hopeful there would be some respite for homeowners in the New Year. “The Insurance Council of Australia is making noise and objecting to what we (the Abbott Government) are doing,” he said. “Finally they have acknowledged there is a problem and hopefully things will start to trickle through and there will be changes for the better.”