David Littleproud takes on 'parasitic' insurers' in the bush

David Littleproud has referred insurers to the ACCC. (ABC Rural: Brandon Long)

Maranoa MP David Littleproud has made a formal complaint to the ACCC about crippling insurance premium rises in south-west Queensland.

Six councils in the region have decided to become insurers after year-on-year increases in premiums for residents and businesses.

The Insurance Council of Australia says it welcomes oversight from the competition regulator.

A federal MP in regional Queensland is calling for an investigation into insurance companies' conduct in the bush, which he says is a "national disgrace".

David Littleproud, the former Nationals leader and MP for Maranoa, said insurers were inflating insurance premiums in regional Queensland due to a lack of competition.

South-west Queensland residents have reported crippling insurance premium increases of up to 500 per cent over the past few years.

Mr Littleproud has asked the Australian Competition and Consumer Commission (ACCC) to investigate.

He said premiums started to increase in the region about 18 months ago with quotes of between $20,000 and $60,000.

"The one question that no insurance company can answer is, 'What's changed?'" he said.

"It's time that the cop on the beat goes in and investigates these claims because what these companies are doing is parasitic."

Mr Littleproud said he had been working with the six south-west councils to compile a dossier of evidence.

The ABC has spoken to residents in Charleville, St George, Thargomindah and Dirranbandi in the past 18 months who said their insurance premiums had doubled or even tripled.

St George resident Adam Osborne was quoted $60,000 for his home and contents insurance earlier this year, when four years ago he paid $7,000.

Home insurance quotes have risen by up to 500 per cent for south-west Queensland residents. (ABC Southern Qld: Dan McCray)

Others are being forced to choose between their mortgage repayments and their insurance.

Balonne Shire Mayor Samantha O'Toole said she was grateful Mr Littleproud had taken action.

"There is a complete frustration that south-west councils feel over a very long period of time and just the inability to get any movement from insurance companies," Cr O'Toole said.

Samantha O'Toole has compiled dozens of stories about insurance premiums spiking. (ABC Southern Qld: Grace Nakamura)

Earlier this year, the Southwest Queensland Regional Organisation of Councils (SWROC), made up of the Balonne, Paroo, Bulloo, Maranoa, and Quilpie shires, created a community mutual fund to bypass major insurers altogether.

Cr O'Toole