Thursday, 10 March 2022

The Insurance Council of Australia (ICA) today provided the following update on claims related to the South-East Queensland and New South Wales floods.

Insurers are on the ground in two states supporting customers with their claims.

Under the ICA’s Catastrophe Protocol insurers triage claims to deal with the most urgent and severe first.

This means some policyholders with claims that are less severe (i.e., their home is habitable) may need to wait a few weeks until as assessor is able to review their claim.

As the clean-up moves into its second week in Brisbane and the Northern Rivers and gets underway in Western Sydney, insurers are cautioning that global materials shortages and local labour constraints will have an impact on the rebuild and recovery timeframe.

The Australian Bureau of Statistics reports that input costs to housing construction increased over the past 12 months by 12 per cent, with strong demand for building materials the main contributor.

A recent update from the Housing Industry Association (HIA) found that the availability off all skilled building trades declined further in the most recent quarter, with trades such as bricklaying, carpentry, joinery, roofing, and general building trades reporting the most severe shortages on record.

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

The Insurance Council welcomes comments by Prime Minster Scott Morrison yesterday that the Federal Government will focus on investing in infrastructure to make communities more resilient to extreme weather events like this flood.

The Insurance Council and insurers have been calling for an increase in Federal Government investment in this area to $200 million per year, matched by the states and territories.

We have previously welcomed commitments also made by the Federal Opposition to increase this investment.

Last month we released our Building a More Resilient Australia election platform and a supporting report from actuarial consultants Finity which highlighted Lismore as one of nine locations in need of urgent flood mitigation infrastructure.

This infrastructure and mitigation investment is vitally important to prevent future harm and devastation to these communities, as we know flood events will inevitably repeat.

What to do if your property has been impacted by flooding and storms

• You can start cleaning up but first take pictures or videos of damage to the property and possessions as evidence for your claim
• Keep samples of materials and fabrics to show your insurance assessor
• Remove water damaged goods from your property that might pose a health risk, such as saturated carpets and soft furnishings
• Make a list of each item damaged and include a detailed description, such as brand, model, and serial number if possible
• If water has entered the property, do not turn on your electricity until it has been inspected by an electrician
• Store damaged or destroyed items somewhere safe where they do not pose a health risk
• Speak to your insurer before you attempt or authorise any building work, including emergency repairs, and ask for the insurer’s permission in writing. Unauthorised work may not be covered by your policy
• Do not throw away goods that could be salvaged or repaired

Wednesday, 9 March 2022

The Insurance Council of Australia (ICA) today said insurers have to date received 107,844 claims related to the South-East Queensland and New South Wales floods. 

This is an 11 per cent increase on yesterday’s claims count, driven by a 25 per cent increase on yesterday’s figures in the number of claims from New South Wales. (See graphs below) 

Sixty-five per cent of claims are from Queensland and 35 per cent are from New South Wales.

Across both States 80 per cent of claims are for domestic property, 17 per cent of claims are for motor vehicles, and three per cent are commercial property claims.

Based on previous flood events the estimated current cost of claims is now $1.62 billion.

This figure remains subject to detailed assessment of claims as loss adjustors move in over the coming weeks and will increase as further claims are made.  

The Insurance Council welcomes the Federal Government’s declaration today of a national emergency, which reflects the extent and severity of the disaster.

Greater funding for support measures, clean-up and recovery is welcomed.

Once this initial phase passes it is vital that funding for measures that improve protections against the impacts of similar events into the future must also be addressed.

The Productivity Commission has found that across Australia 97 per cent of natural disaster funding is spent after an event, with just three per cent spent on measures to improve community resilience ahead of an event.

The Insurance Council and insurers have consistently called for an increase in Federal Government investment in this area to $200 million per year, matched by the states and territories.

State taxes and charges on insurance, land use planning and building codes also need to be urgently addressed if we are to make real changes to the nation’s resilience to worsening extreme weather.

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

Yesterday’s wild weather in New South Wales has seen a big lift in claims from that State, and as the insured damages bill passes $1.5 billion we can see that this event is shaping up to be one of Australia’s most expensive floods.

The Insurance Council welcomes the Prime Minister’s announcement today of a national emergency declaration.

It is important for policyholders to note that a declaration by any government or indeed the Insurance Council has no effect on the application or coverage of a policy, including the excess if there is one.

The General Insurance Industry Code of Practice commits insurers to respond to catastrophes efficiently, professionally, practically, and compassionately.

What to do if your property has been impacted by flooding and storms  

• You can start cleaning up but first take pictures or videos of damage to the property and possessions as evidence for your claim 
• Keep samples of materials and fabrics to show your insurance assessor 
• Remove water damaged goods from your property that might pose a health risk, such as saturated carpets and soft furnishings 
• Make a list of each item damaged and include a detailed description, such as brand, model, and serial number if possible 
• If water has entered the property, do not turn on your electricity until it has been inspected by an electrician   
• Store damaged or destroyed items somewhere safe where they do not pose a health risk 
• Speak to your insurer before you attempt or authorise any building work, including emergency repairs, and ask for the insurer’s permission in writing. Unauthorised work may not be covered by your policy 
• Do not throw away goods that could be salvaged or repaired 

Tuesday, 8 March 2022

 The Insurance Council of Australia (ICA) today said insurers have to date received 96,844 claims related to the South-East Queensland and New South Wales floods.

This is a 12 per cent increase on yesterday’s claims count, driven by a 23 per cent increase on yesterday’s figures in the number of claims from New South Wales. (See graphs below)

Sixty-nine per cent of claims are from Queensland and 31 per cent are from New South Wales.

Across both States 80 per cent of claims are for domestic property, 17 per cent of claims are for motor vehicle, with the remainder commercial property claims.

Claims have been received from 80 local government areas.

Based on previous flood events the estimated current cost of claims is now $1.45 billion.

This figure remains subject to detailed assessment of claims as loss adjustors move in over the coming weeks and is expected to increase as further claims are made.

Under Insurance Catastrophe protocols agreed by the industry, insurers prioritise the most urgent and most vulnerable customers when assessing claims.

This means some customers whose situation is not as urgent or severe (i.e., their home is habitable) may need to wait a few weeks until an assessor is able to review their claim.

The ICA has been working with Federal authorities to expedite the processing of visas for key insurance recovery personnel being deployed to Australia from overseas to assist with the recovery effort.

All visa applications provided have been processed and insurers are grateful for the support received by the Department of Home Affairs and Immigration Minister Alex Hawke.

ICA CEO Andrew Hall will be in Lismore from this afternoon meeting with local MPs, stakeholders and insurers.

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

As we expected we are now seeing an influx of claims from New South Wales.

Insurers are prioritising those customers whose situation is the most severe to support them getting back on their feet as soon as possible.

This means it may take a few weeks for insurers to start the assessment process for less severe claims, but those customers can be assured their insurer is there to support them.

Insurers rely on a network of specialists from across the country and around the world who are deployed when and where they are needed.

I want to thank Immigration Minister Alex Hawke, his office, and department for their support in quickly processing a number of visa applications, which means those specialists will be on ground shortly assisting communities in their recovery.

What to do if your property has been impacted by flooding and storms

• You can start cleaning up but first take pictures or videos of damage to the property and possessions as evidence for your claim
• Keep samples of materials and fabrics to show your insurance assessor
• Remove water damaged goods from your property that might pose a health risk, such as saturated carpets and soft furnishings
• Make a list of each item damaged and include a detailed description, such as brand, model, and serial number if possible
• If water has entered the property, do not turn on your electricity until it has been inspected by an electrician
• Store damaged or destroyed items somewhere safe where they do not pose a health risk
• Speak to your insurer before you attempt or authorise any building work, including emergency repairs, and ask for the insurer’s permission in writing. Unauthorised work may not be covered by your policy
• Do not throw away goods that could be salvaged or repaired 

Monday, 7 March 2022

The Insurance Council of Australia (ICA) today said insurers have to date received 86,703 claims related to the South-East Queensland and New South Wales floods. 

This is a 28 per cent increase on Friday’s claims count, driven by a 49 per cent increase in the number of claims from New South Wales as policyholders return to their properties in that State. (See graph below)

Seventy-two per cent of claims are from Queensland and 28 per cent are from New South Wales.

Across both States 83 per cent of claims are for domestic property, with the remainder motor vehicle.

Based on previous flood events the estimated current cost of claims is now $1.3 billion.

This figure remains subject to detailed assessment of claims as loss adjustors move in over the coming weeks and is expected to increase as further claims are made. 

The ICA and insurers are reminding customers that they are not required to keep destroyed property, including carpet and furnishings, and instead should take photos, note any identifying information, and keep material samples.

Insurers and the ICA now have a presence at a number of recovery centres, however the very large number of impacted towns across two States means insurers may not be at all recovery centres at all times but are working collaboratively to respond to customer concerns regardless of insurer.

App, online or phone is always the most efficient way for customers to engage with their insurer, however if a customer attends a recovery centre and their insurer is not in attendance at that time they can pass on their details to another insurer or the ICA.

Insurers continue to work alongside Local, State and Federal Government stakeholders and agencies to resolve any issues as soon as they are known, and are monitoring the impact of the weather system currently impacting Sydney and surrounds and the New South Wales Mid-North Coast.

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

The ICA and insurers are now on the ground in a number of locations supporting communities in their recovery.

We continue to hear reports that some customers are uncertain about whether to discard destroyed property.

Insurers are encouraging customers to take photos and video and retain serial numbers and other identifying information if it is known, however they are not required to retain destroyed property, particularly if doing so would cause a health risk.

As expected, claims continue to grow from this widespread event, which is shaping up to be one of the most significant floods this country has experienced.

We will always have extreme weather in Australia, but if we want different outcomes the future Australian governments must increase investment in measures to retrofit homes and better protect communities.

Remember 

• Safety is the priority – don’t do anything that puts anyone at risk 
• Only return to your property when emergency services give the go ahead 
• If water has entered the property, don't turn on your electricity until it has been inspected by an electrician 
• Contact your insurance company as soon as possible to lodge a claim and seek guidance on the claims process 
• Property owners who have sustained roof damage should advise their insurer, your insurer will arrange emergency works to minimise any hazards and prevent further damage. This can include isolating damaged solar panels or electrical circuits and installing a roof tarp 
• Don’t worry if you can’t find your insurance papers – insurers have electronic records and need only your name and address 

What to do if your property has been impacted by flooding and storms

• You can start cleaning up but first take pictures or videos of damage to the property and possessions as evidence for your claim 
• Keep samples of materials and fabrics to show your insurance assessor 
• Remove water damaged goods from your property that might pose a health risk, such as saturated carpets and soft furnishings 
• Make a list of each item damaged and include a detailed description, such as brand, model, and serial number if possible 
• If water has entered the property, do not turn on your electricity until it has been inspected by an electrician   
• Store damaged or destroyed items somewhere safe where they do not pose a health risk 
• Speak to your insurer before you attempt or authorise any building work, including emergency repairs, and ask for the insurer’s permission in writing. Unauthorised work may not be covered by your policy 
• Do not throw away goods that could be salvaged or repaired