Insurance Council of Australia

Cyclone & storm

Community resilience to flood can improve, new report finds

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Community resilience to flood can improve, new report finds

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News release

A new report released today by the Insurance Council of Australia (ICA) has found current land-use planning rules are not properly protecting Australians from worsening flood risk but can be improved.

Estimates show more than one million private properties, or about one in 10 homes, have some level of flood risk in Australia.

Revealed in the third of ICA’s Climate Change Impact report series, Flooding and Future Risks, the report identifies the need for an overhaul of the rules governing how and where new homes are built.

It notes as the climate continues to warm existing flood zones are likely to expand and expose more property and assets.

While the report focuses on modern homes (built post-2000) and managing flood risk to new development, it also identifies important measures to mitigate the risk of flood in established areas, such as investing in levees and floodways.

The report, which draws on analysis conducted by James Cook University Cyclone Testing Station in association with Risk Frontiers, leverages data from thousands of flood claims covering four recent flood events.

The report finds that:

Current land use planning settings and associated building controls do not eliminate flood risk to modern properties

The current building code does not consider building resilience to flood risk

There are key data gaps that prevent insurers and homeowners from building an accurate picture of flood risk, particularly in a changing climate.

The report identifies flooding as one of the costliest extreme weather events in Australia.

The total cost of floods, from river flooding and high intensity rainfall, since ICA records began in 1970 is in excess of $21.3 billion.

The cost of this year’s floods across south-east Queensland and northern New South Wales is estimated to be $3.346 billion, making it Australia’s costliest flood ever.

The report references analysis by financial actuary consultancy Finity for the Insurance Council, proposing a five-year $2 billion Federal Government resilience investment program to better protect Australians from flood as well as cyclones, bushfire and coastal risks.

Quote attributable to ICA CEO Andrew Hall:

This report again underscores the need to make better decisions in land use planning, building standards and government investment in mitigation works if we are going to end this cycle of flood impacts on homes and businesses in Australia.

Addressing the risks identified in this report will play a key role in better protecting communities in the face of worsening flooding and help improve access to affordable insurance coverage.

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Federal decision on Queensland resilience funding disappointing

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Federal decision on Queensland resilience funding disappointing

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News release

Wednesday, 6 April 2022

The Insurance Council of Australia (ICA) today expressed its disappointment in the Federal Government’s decision to not contribute to the Queensland Government’s extreme weather resilience package.

Last Month the ICA welcomed the Queensland Government’s announcement of a $741 million Resilient Residential Recovery package to better protect Queenslanders from the impacts of extreme weather events, such as flood and cyclone.

The Queensland Government had requested that the Federal Government fund 50 per cent of the package, which was designed to assist Queenslanders pay for resilience measures such as retrofitting and raising homes in flood impacted areas.

The ICA has long been calling for the Queensland Government to lift its investment in this area, and late in February released its Building a More Resilient Australia report which called for $726 million to be invested jointly by the Queensland and Federal Governments over the next five years.

Building a More Resilient Australia calls for Federal Government investment in measures to better protect homes and communities from the impacts of extreme weather to be doubled nationally to $200 million a year over five years, and for this to be matched by the states and territories.

Last week, the ICA welcomed the Federal Government’s 2022-23 Budget announcement of $268 million in related measures to better protect Australians from the impacts of extreme weather.

While the two-year commitment to resilience funding was welcome, sustained and greater funding in this area is required if the risk profile of communities exposed to extreme weather is to change.

A poll undertaken last month for the ICA found that 68 per cent of people living in Greater Brisbane say that not enough is being invested by governments at all levels to protect homes and communities from extreme weather events, with 62 per cent calling for funding to at least double.

Fifty-two percent of those surveyed in the Queensland capital believe funding of this important protection is the responsibility of the State and Federal governments equally.

As of Friday 1 April, more than 92,700 claims had been lodged in Queensland in relation to the March floods, with an estimated claims cost of $1.3 billion.

Quote attributable to ICA CEO Andrew Hall:

As severe rain and flooding continues to impact the east coast the failure of the Federal Government to match Queensland’s investment in measures to improve household and community protections against extreme weather is disappointing and short-sighted.

If Australia is to get serious about improving our resilience to flood, bushfire and cyclone, all levels of government must contribute.

Australians – particularly those still impacted by the ongoing rain and flooding – want governments to come together to provide better protections against worsening extreme weather, not wash their hands of responsibility.

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ICA Welcomes Federal Government Disaster Fund

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ICA Welcomes Federal Government Disaster Fund

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News release

Friday 18 March 2022

The Insurance Council of Australia (ICA) has today welcomed the Federal Government’s decision to draw down on its Emergency Response Fund and inject $150 million to communities devastated by the recent floods. 

The Queensland and New South Wales governments will each receive $75 million to assist in immediate disaster recovery, as well as much-needed funding for future disaster risk mitigation and resilience initiatives. 

The Insurance Council and insurers have long been calling for greater investment in making homes, businesses and communities more resilient in the face of worsening extreme weather. 

Late last month, the Insurance Council released our election platform, Building a More Resilient Australia, calling for a doubling of Federal funding to $200 million a year matched by states and territories. 

The platform called for a range of measures to better protect households and communities from the impacts of extreme weather and put downward pressure on premiums. 

Comment attributable to Andrew Hall, CEO Insurance Council of Australia:  

In the past two weeks we have seen millions impacted by worsening extreme weather as a result of climate change.  

The devastation we have witnessed is evidence of the urgent need to improve community resilience in areas with high risk of extreme weather impacts. 

We welcome this much needed investment, not only for communities in desperate need of help now but which, when the time comes to build again, will need investment that makes them safer and more resilient.  

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Insurers to provide Seroja claims assistance 

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Insurers to provide Seroja claims assistance

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News release

Tuesday, 15 March 2022

The Insurance Council of Australia (ICA) and insurers will visit TC Seroja impacted communities next week to meet with policyholders requiring assistance with their claims.

Claims managers and assessors will travel to towns where the recovery is continuing.

One-on-one consultations will be held at local venues and will follow Covid-19-safe protocols in Kalbarri, Northampton, Morawa and Mingenew.

  • Tuesday 22 March – 9:00am to 12:00pm – Kalbarri
  • Tuesday 22 March – 2:00pm to 5:00pm – Northampton
  • Wednesday 23 March – 9:00am to 12:00pm – Morawa
  • Wednesday 23 March – 2:00pm to 5:00pm – Mingenew

Registration is essential. Go to insurancecouncil.com.au/CycloneSeroja to book an appointment with an insurer or the Insurance Council of Australia.

Policyholders unhappy with their insurance claims experience can lodge a complaint using a dedicated internal dispute resolution process with their insurer internal dispute resolution (IDR) process.  

If on completion of the IDR process the policyholder is not satisfied with the insurer’s decision, the policyholder can use the free external dispute resolution process through the Australian Financial Complaints Authority (AFCA) on 1800 931 678 or afca.org.au. 

As of 22 February 2022, there has been 9,273 claims lodged for damage from TC Seroja, with 99.44 per cent accepted and 83.75 per cent of 6,394 personal claims closed. The current estimated loss value is $346.7 million.

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Insurance catastrophe declared for Southeast Queensland impacted by severe weather and flooding

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Insurance catastrophe declared for SE Queensland impacted by severe weather and flooding

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News release

Saturday, 26 February 2022

The Insurance Council of Australia (ICA) has declared an Insurance Catastrophe for Southeast Queensland impacted by severe weather and flooding that has occurred since 21 February.

Record flood levels in the Mary River system and flood levels not seen since 2013 across many other catchments are expected.

The ICA’s Catastrophe declaration serves to escalate and prioritise the insurance industry’s response for affected policyholders.

Under the Catastrophe declaration:

  • Claims from affected policyholders will be given priority by insurers
  • Claims will be triaged to direct urgent assistance to the worst-affected property owners
  • ICA representatives will be mobilised to work with local agencies and services and affected policyholders as soon as emergency services say it is safe to do so
  • Insurers will mobilise disaster response specialists to assist affected customers with claims and assessments as soon as emergency services say it is safe to
  • An industry taskforce has been established to identify and address issues arising from this catastrophe
  • The insurance industry has made this Catastrophe Declaration to activate services and support for affected homeowners and businesses and reassure them that their insurer is there to help

The impact of the flooding has been felt most significantly in Southeast Queensland however the declaration covers all claims related to the ongoing severe weather and flooding into the northern regions of NSW over the last few days.

Quote attributable to Andrew Hall, CEO, Insurance Council of Australia:

Insurers’ first priority is community safety, and so we strongly encourage all those impacted by this severe weather and flooding event to ensure they do not undertake any activity themselves that may put their safety at risk.  Avoid travel wherever possible and contact your energy provider or an electrician to check your electricity supply if your home has been flooded.

It’s too early to understand the extent of the damage to property in affected areas and to estimate the insurance damage bill, however insurers have received more than 3,500 claims in Southeast Queensland over the last three days.

The insurance industry has made this Catastrophe declaration to activate services and support for affected homeowners and businesses and reassure them that their insurer is there to help.

As many areas are currently inaccessible due to damage and floodwater and evacuation orders in Gympie, insurers are expecting further claims in coming days as emergency services allow residents to return to their properties to examine the extent of their damage and losses.'

Impacted individuals can read more on what do when you return to your property after flood, here.

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Insurers warn of disaster chaser opportunists following the Northern Beaches storm

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Insurers warn of disaster chaser opportunists following the Northern Beaches storm

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News release

Tuesday, 21 December 2021

Insurers are urging householders in the Northern Beaches storm affected areas to be aware of disaster chasers operating in their community.

Reports state that disaster chasers are offering tree and debris removal and requesting payment upfront in cash, but leave with work that is either poorly done, not completed or is exorbitantly expensive. Disaster chasers may also offer to undertake home inspections or repairs for cash payment.

Some disaster chasers pressure homeowners to sign a contract on the spot for future repair work and may promise their insurer will pay. This can leave the homeowner liable to pay a commission or inflated repair bills not covered by their insurance policy, as insurers will only pay for approved work that is covered by a policy.

Residents who believe they may have been approached by or signed with a disaster chaser should seek guidance from their insurer.

To date, approximately 730 claims have been received by insurers in relation to Sunday’s storm with more expected in the coming days.

Tips for identifying and dealing with a disaster chaser: 

  • An insurer will not send a tradesperson or builder to your home without notifying you and providing you with details.
  • Speak to your insurer before agreeing to any repairs or rebuilding work to make sure your insurer will cover the work. 
  • A tradesperson or builder who is working for your insurer will not ask you for payment. 
  • If in doubt, ask for identification such as a builder’s licence or driver’s licence, and ring your insurer to check. 
  • If you sign a contract with a disaster chaser, you have a statutory 10-day cooling-off period. Your insurer can help you end the relationship with the disaster chaser.

Quote attributable to Andrew Hall, CEO: 

Insurers are closely monitoring claims from Sunday’s freak storm, and are already assisting customers with their claims.

Unfortunately, disaster chasers can emerge soon after a natural disaster and target householders who have been affected.  

They can leave families, the elderly and vulnerable Australians much worse off, with large bills and homes that remain badly damaged.  

The ICA urges anyone who is approached by a disaster chaser to call the relevant authorities. 

 

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