Tuesday, 02 January 2024

The Insurance Council of Australia (ICA) is urging vulnerable residents in North Queensland to be wary of exploitative “disaster chasers” operating in their community.

Disaster chasers are opportunistic individuals who offer quick-fix cleanup, repairs, and inspections, often demanding upfront cash payments for shoddy or incomplete work.

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.

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.

Policyholders in North Queensland have lodged 6,083 insurance claims since 10 December 2023, however it’s too early to estimate the cost of the damage.

Quote attributable to Insurance Council of Australia CEO Andrew Hall: 

Unfortunately, extreme weather events like cyclones and flooding often attract unscrupulous individuals who exploit the vulnerability of affected communities.

We urge insurance customers to be vigilant and protect themselves from these predatory practices.

Contact your insurer, verify credentials, and don't let untrustworthy individuals cloud your judgment. 

Insurers are on the ground in far north Queensland to assist impacted customers and we urge residents to reach out to their insurer to help them get back on their feet.

Friday, 29 December 2023

The Insurance Council of Australia (ICA) has today escalated its response to severe storms impacting Queensland, New South Wales and Victoria since 23 December, declaring an Insurance Catastrophe. 

This decision reflects the escalating severity of the situation, the high volume of claims already received, and the anticipated impact of further extreme weather events forecast for the coming days. 

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 do so.   
• 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.    

As of today, insurers had received 18,174 claims related to the storms across Queensland, New South Wales and Victoria, with 10,716 claims in the Gold Coast region alone. 

Access to storm-damaged areas remains hampered by ongoing power outages. The Insurance Council urge homeowners and business owners whose property or vehicle has been impacted to contact their insurer as soon as possible to initiate the claims process, even if the full extent of the damage is unclear. 

For those beginning cleanup efforts, they are not obligated to retain damaged property, including carpets and furnishings. Simply take photos, record any identifying information, and keep material samples for claims purposes. 

Quote attributable to ICA COO Kylie Macfarlane: 

Given the immense scale and destructive nature of these storms across eastern Australia, the Insurance Council and insurers are escalating our response to a Catastrophe level to better serve the immediate and future needs of our customers. 

Insurers expect claims volumes to grow in the coming days as more residents gain access to properties and power is restored to some areas, however, it is too early to understand the cost of the damage. 

We encourage residents to put their safety and the safety of their family first and contact their insurer if they need immediate financial assistance. 

Wednesday, 27 December 2023

The Insurance Council of Australia (ICA) has today declared a ‘Significant Event’ for regions of Queensland, New South Wales and Victoria impacted by severe storms between 23 December and Boxing Day.

The Insurance Council’s preliminary extreme weather processes have been activated to assess and monitor the insurance claims impact of the events, which included flash floods, hailstorms and damaging winds.

Under a significant event declaration:  

• The ICA commences its claims data collection, analysis, and reporting processes in consultation with members.  
• ICA representatives will continue to work with government and agencies to understand impacts on the community and ensure affected residents receive assistance.  

As of 10am today, insurers have received more than 7,500 claims related to the storms across the three states.

If property or vehicle has been impacted, customers are advised to contact their insurer as soon as possible to commence the claims process, even if they do not know the full extent of damage.   

The Insurance Council is working with emergency services and government personnel across the three states to coordinate the recovery response and will continue to closely monitor the weather forecast for the week. 

As some people have started the clean-up process, the ICA and insurers are reminding customers that they are not required to keep destroyed property, including carpets and furnishings, and instead take photos, note any identifying information, and keep material samples. 

Quote attributable to ICA COO Kylie Macfarlane.

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

It’s too early to understand the full extent of the damage in affected areas and to estimate the insurance damage bill, however we know there has been a significant number of homes and vehicles damaged as a result of the storms that hit from 23 December to Boxing Day. 

As more extreme weather is expected in the coming days, insurers’ priority is community safety. We strongly encourage all those impacted to put their safety first and adhere to evacuations orders.