Insurance Council of Australia

Disaster & catastrophes

New survey shows community backs resilience investment

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New survey shows community backs resilience investment

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News release

Monday, 21 March 2022 

Two thirds of those living in communities impacted by the recent floods do not believe governments are investing enough to protect homes and communities from extreme weather events, a new survey undertaken for the Insurance Council of Australia (ICA) has found.

More than 90 per cent of those who want more invested think government spending in measures to better protect against extreme weather should at least double, with 57 per cent saying whatever is required should be spent.

The survey of more than 1,000 people from three flood-impacted regions in SE Queensland and New South Wales found that 51 per cent believe state and Federal governments have equal responsibility for this area, 22 per cent say state governments, and 11 per cent say the Federal Government.

An overwhelming 94 per cent of people surveyed say there should be better controls on where homes are built so they are not at risk of flood.

Flood-impacted communities have a strong understanding of what is driving insurance affordability and availability constraints, with 47 per cent saying the reason flood cover can be difficult or expensive to obtain is the risk of flood and 11 per cent citing climate change, with just one in five saying this is driven by insurer profits.

Alarmingly, 37 per cent of those surveyed say they don’t have enough insurance to rebuild if required.

Last month the ICA released its election platform, Building a More Resilient Australia, which called for a range of measures to better protect households and communities from the impacts of extreme weather and put downward pressure on premiums, including:

  • A doubling of Federal funding to $200 million a year over five years for household retrofits and community protection projects, matched by the states and territories, to fund measures including:
  • $522 million for local projects such as flood levees to defend regional towns
  • $413 million to better protect homes against flood by raising utilities and services above the expected floodline
  • $37 million for an improved national flood early warning system, estimated to increase the lead time for flood warnings from 3-5 to 10-15 days
  • Better land use planning so no more homes are built in harms’ way
  • Update the national building code to include building resilience as a standard
  • Remove state taxes and charges on insurance, which numerous inquiries have found to discourage adequate cover by driving up the cost of premiums.

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

The Insurance Council has long called for greater investment in measures that better protect homes and communities from the impact of extreme weather.

This most recent flood has unfortunately brought this issue into sharp relief, and now those directly impacted have added their voices to this call.

With two thirds of those impacted by the most recent devastating floods calling for funding to be significantly increased, it’s way past time for governments to act.

Impacted communities clearly want state and federal governments to work together to solve this issue and see both levels of government equally responsible.

The community also clearly understands the folly of allowing development to take place on floodplains.

Insurers have a ready-made plan for investment in projects that will better protect extreme weather-exposed communities.

We’re also ready to start work with governments to review land use planning, improving building standards, and removing state taxes on insurance products.

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About the survey: This quantitative research study was sampled using Kantar Profile’s Lifepoints network, on behalf of the Insurance Council of Australia from Friday, March 11 to Monday, March 14, 2022. More than 1,000 people of all age groups were surveyed across flood-impacted regions including the Northern Rivers and Western Sydney in NSW and Greater Brisbane in Queensland. Respondent data was subject to standard data quality and engagement checks, including digital fingerprinting to ensure unique respondents only.

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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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Frequently asked questions after a disaster

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Frequently asked questions after a disaster

The Insurance Council of Australia is the representative body for General Insurers in Australia. While we’re unable to provide consumers with personal advice on products or insurers, we are on the ground following disasters to coordinate insurer response and respond to general enquiries related to the claims, clean-up and recovery process.

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.

Contact your insurer immediately. If you have home or building insurance, your policy may provide emergency temporary accommodation.

Contact your insurer as soon as possible to lodge a claim and seek guidance on the claims process. Don’t worry if you can’t find your insurance papers, insurers have electronic records and need only your name and address.

If water has entered your property, don’t turn on your electricity until it has been inspected by an electrician. If you are without power, gas or NBN, check with your utilities supplier or networks on when you will be reconnected. You do not need to wait for your insurance assessor to visit your property before your utilities are reconnected.

You can start cleaning up but first take pictures or videos of damage to the property and possessions as evidence for your claim. If you have security footage of the event, make this available.

  • Make a list of each item damaged and include a detailed description, such as brand, model and serial number if possible.
  • Take photos before removing any water damaged or soaked items that may pose a health risk. 
  • Store damaged or destroyed items somewhere safe where they don’t pose a health risk.
  • Do not throw away goods that could be salvaged or repaired.
  • Speak to your insurer before authorising any building work, including emergency repairs.

An insurance assessor will inspect your property as quickly as possible once you’ve lodged a claim. That said, following large disasters, access to your property may be limited for days or even weeks. Your insurer will tell you when to expect your assessor.

Unfortunately, disasters can attract fraudsters looking to profit from others misfortune. If a builder or assessor unexpectedly arrives at your door offering services, you may ask to see some identification for your peace of mind. You may also contact your insurer to confirm the builder or assessor has been appointed to assist with your claim.

An excess is the amount you have agreed to pay towards each incident. The specific amount will be set out in your Certificate of Insurance. You may be required to pay more than one excess depending on the circumstances. If you are unsure, ask your insurer. A Disaster Declaration does not remove your obligation to pay your excess.

Speak to your insurer or broker if you’re not sure. Flood has a standard definition and for domestic products is offered in four ways:

  • Standard inclusion
  • Standard inclusion, opt out at customer request
  • Not standard inclusion, opt in at customer request
  • Not standard inclusion

Most domestic products are purchased direct from insurers. Customers should review their policy documentation or contact their insurer to confirm the cover they have in place.

For commercial products, flood cover is not standard and has to be opted into. Most commercial products are purchased via intermediaries i.e. brokers. Customers should review their policy documentation or contact their Broker to confirm the cover they have in place.

The covering of normally dry land by water that has escaped or been released from the normal confines of:

  • any lake, or any river, creek or other natural watercourse, whether or not altered or modified; or
  • any reservoir, canal, or dam.

If you opted out of flood cover, did not opt in to flood cover, or your policy excludes flood, your insurer may still assess any claim you make to determine how your home was inundated. This may be required to establish whether other inclusions in your policy (cover for storm water run-off for example) can cover all or part of your claim.

Check your policy wording and talk to your insurer if you do not understand what you are covered for.

Hydrology is the field of study and expertise that can determine how a home or property was inundated. Insurers will arrange a hydrology report in cases where they need to determine the primary cause of water inundation to make a claim decision.

A ‘Make Safe’ is immediate rectification works to prevent further damage to your property or make the site safe to visit. This may include fitting tarpaulins to your roof or treating debris with an adhesive to prevent the spread of contaminants.

A ‘Make Safe’ may initially be conducted by emergency services, government agency or a contractor appointed by your insurer.

A scope of works is a document that sets out what damage to your property is covered by your insurance policy. The scope of works is a list of home building repair works for your insurance claim. It can help identify and outline what repair or rebuilding work is needed to fix things. It may be used to obtain repair quotes.

Your scope of works is usually prepared by your insurer’s loss adjuster and/or builder or engineer. The scope of works may be developed by visiting or virtually assessing your property to inspect the damage and asking you for information.

If a house hasn’t been well maintained, it is at a much higher risk of being damaged by extreme weather. For this reason, when you apply for insurance, insurers require you to confirm your home is well maintained. If an insurer assesses your home and finds evidence it hasn’t been well maintained and that has contributed to the damage, they may reduce the amount they will pay you or require you to fix the maintenance issue before they repair your home. In some cases, the insurer may deny the claim.

The extent of damage, complexity of your claim and access to labour and supplies will impact how long a repair or rebuild will take. Once your Scope of Work is complete, ask your insurer for a timeline.

A cash settlement is an amount of money your insurer may offer to settle your claim. Insurers can settle some or all of your insurance claim using a cash settlement.

Insurers will explain the basis for the dollar amount of the cash settlement they offer you and provide you with a Cash Settlement Fact Sheet. You are free to get your own quotes to estimate how much it would cost to repair or rebuild your property and provide them to your insurer as part of the cash settlement process.

Common reasons for cash settlements include:

  • it is unsafe to repair or rebuild your home.
  • the local authority will not allow you to repair or rebuild.
  • your insurer can only partially accept your claim. This may be because there is damage to your property that is not covered by your insurance, which first needs to be fixed by you.
  • your insurance does not cover the amount of money it will take to repair or rebuild your home to today’s building standards and it is not possible for your insurer to repair or rebuild your home, having explored available options with you for you to pay the difference.

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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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What to do when you return to your property after flood

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What to do when you return to your property after flood

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Immediate aftermath

  • Safety is the priority - don’t do anything that puts anyone at risk.
  • Only return to a property or vehicle when emergency services give the go ahead.
  • Do not drive your vehicle if it has suffered water damage.
  • If water has entered the property, don't turn on the 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.
  • Let your insurer know if you've sustained roof damage.
  • Speak to your insurer before you attempt or authorise any building work, including emergency repairs, and ask for the insurer’s permission in writing, as unauthorised work may not be covered by your policy.

Cleaning up after flood

  • Remain mindful of safety
  • Before you start your cleanup, document the damage with photos and videos to support an insurance claim. 
  • Take photos before removing any water damaged or soaked items that may pose a health risk.
  • Make a list of damaged items, including the brand, model and serial number if you can.
  • Don't throw away items that could be repaired unless they 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, as unauthorised work may not be covered by your policy.

Urgent financial need

If you need urgent financial assistance let your insurer know, they may be able to fast track your claim and make an advance payment within five business days of you demonstrating your urgent financial need. Any advance payment may be deducted from the total value of your claim.

If your claim has been finalised within one month of the catastrophe, your insurer must give you 12 months from the finalisation date to ask for a review of your claim (for instance, if you think the insurer has not accurately assessed your loss), even if you have signed a release.

Useful links

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East Coast flood event insurance update – 10 March

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East Coast flood event insurance update – 10 March

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News release

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.

 

All claims

New claims% Increase$ EstimatePropertyMotor

Other

NSW

44,193

6,82318%$663m33,7249,431

1,038

QLD

73,823

3,3495%$1.107b61,48510,050

2,288

Total118,01610,1729%$1.77b95,209 (81%)19,481 (16%)

3,326 (3%)

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

 

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