The Chamber of Commerce and Industry Queensland's Nick Behrens said the body's latest Pulse Survey showed insurance premiums were the third biggest constraint on Queensland businesses.
"Rising insurance premiums are affecting all Queensland businesses," Mr Behrens said.
"The price hikes are a combination of a number of factors which have jacked up premiums and created of a perfect storm in some regions, especially in North and Far North Queensland. However, premiums across the state are soaring."
"Australian insurance companies' own insurance costs are increasing on the back of rising global re-insurance costs, which is then passed on to Queensland insurance policy holders.
"Population densities and market scale have also compounded difficulties being experienced by the industry.
"Obviously the natural disasters in recent years have both directly increased premiums to affected households and businesses.
"Indirectly these disasters have also affected all Queenslanders as cross subsidisation inevitably occurs.
"Anecdotally, there are also concerns that some companies are deliberately pricing themselves out of the northern Queensland market to avoid further exposure to the risk of natural disaster-prone regions.
"This is now causing a degree of market failure through lack of competition.
"Unfortunately, we have heard reports of insurance companies, through this lack of competition, price gouging customers."
Mr Behrens said the State Government's decision to increase the stamp duty on insurance from 7.5 per cent to 9 per cent had also contributed to rising cost of premiums.
"CCIQ is concerned that some Queensland businesses may now be inadequately protecting their assets with under-insurance or alarmingly, no insurance," he said.
CCIQ is commissioning a study this month to gauge just how significant the impact of rising insurance premiums are having on businesses.
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