UNIT owners and body corporate managers have told of their frustration, anger and confusion at rises in strata title insurance costs, which they say are crippling many local owners and businesses.

Sitting at Port Douglas and Cairns yesterday, the House of Representatives Standing Committee on Social Policy and Legal Affairs heard first-hand the impacts of the price increases of between 200 per cent and 1000 per cent.

The Unit Owners Association of Queensland called for an immediate 12-month suspension of premium increases on residential strata properties until the issue was resolved.

UOAQ Cairns branch representative Andrew Hayes said the situation had reached "crisis point" and called for the Federal Government to intervene.

He said there was only one insurance company in the Far North that would continue to insure unit/apartment buildings valued at more than $5 million.

Committee hosts Cairns Senator Jan McLucas and Leichhardt MP Warren Entsch said the response had been overwhelming, with about 400 submissions – dwarfing the 108 for the floods inquiry.

A second conference room needed to be opened to cater for the large turnout in Cairns, as more than 200 people crammed the public forum.

Some of the submissions made by the Insurance Council of Australia, CGU, Zurich and Suncorp were met by jeers from the audience, in response to claims that there was adequate competition between statra title insurers.

Meg Trimble, a former body corporate manager and Palm Cove unit owner, cited insurance costs that had increased from $3697 in 2008 to a quote of $36,000 in 2011.

"I’m really frightened for them. As a former real estate agent and body corporate manager, it’s very difficult to look someone in the eye and say, ‘This is a good investment’," she said.

Insurance Council of Australia chair Rob Whelan said that insurance premiums in north Queensland had been "historically underpriced" and that adjustments needed to be made to offset risk.

Mark Lever, CEO of the nationwide body Strata Community Australia, said the most severe consequence of the dramatic change in prices was the effect on "that intangible called confidence".

"It’s the impact that this uncertainty is having on people’s lifestyles and the consequences for investment on top of an already embattled tourism industry," he said.

The committee chairman, MP Graham Perrett, said he recognised the urgency of the situation.

"We know this issue is affecting many people and causing great financial stress," he said.

The committee will present its report in April.

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