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 

Sunday, 6 March 2022

Representatives from the Insurance Council of Australia (ICA) and its members will be in Lismore tomorrow, March 7 to assist policyholders impacted by the devastating floods.

The widespread flooding in the Northern Rivers District of NSW saw the city evacuated as the Wilsons River broke its levee last Sunday night.

The entire Lismore CBD was inundated after days of unrelenting torrential rain, which saw the river peak at 13.5metres on Monday night, leading to the city’s worst flooding in nearly 50 years.

ICA and its members were today given clearance from State Emergency Services to enter the city, with plans now underway to ensure property owners receive the timely information and help needed to get the claims process started.

Eligible customers in urgent need can now receive an advance cash payment of up to $5,000 and may also be able to access temporary accommodation under their policy.

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

The impacts in Lismore are incredibly distressing, and we understand the timely nature of getting personnel on the ground as soon as possible to assist policyholders in the claims process.

We want to make this process as simple as possible for the people of Lismore, who are already suffering tremendous losses as a result of these devastating floods.

As we have heard once again today, this time from Lismore mayor, Steve Krieg, we need to do better at protecting homes, business and communities from the impacts of extreme weather.

We once again call on the Federal Government to increase its resilience investment to $200 million a year, and that the states and territories commit to matching this investment.

The Insurance Council outlined the investment needed in its election policy document, Building a More Resilient Australia, release on February 22.

As of midday Friday (March 4) insurers had received 67,537 claims related to flood in South-East Queensland and New South Wales. ICA will continue to collect claims data throughout the day and provide an update tomorrow.

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 

Saturday, 5 March 2022

The Insurance Council of Australia (ICA) is today to encouraging property owners to be present at their property as volunteers (mud army) arrive to assist with the clean-up.

Property owners are advised to take as many photos and videos as they can before discarding items that will be subject to the claim.

Fabric and carpet samples are also useful for verifying the damaged or destroyed property, but policyholders do not need to keep carpet, furniture and so on for their claim.

If in doubt, policyholders should contact their insurer.

Flood waters that affected homes and business from Wide Bay to the Sydney basin are receding, leaving damage to property that is currently being assessed by insurers.

The ICA is aware of some policyholder confusion around how policies may respond to flood.

A standard definition of flood was introduced in June 2012 that applies to home and contents, small business and domestic strata-title policies. The standard definition of flood in Australia is:

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.

Flood cover is a standard policy inclusion except where it is expressly stated cover for flood is excluded, for example where an insurer clearly states it does not cover flood, or when an option is provided to ‘opt out’ of flood cover.

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

Volunteers in their thousands are showing up to join the mud army and lend a hand to neighbours, friends and strangers as the mammoth clean-up continues in Queensland and New South Wales.

This is heart-warming to see, and we thank all those willing to lift a shovel and bucket to those in need following these devastating floods.

We ask that all those involved in the clean-up adhere to the advice of the property owners and their insurer, and as much as possible take pictures or videos of damage property as evidence for that person’s insurance claim.

If you are unsure if an item can be discarded, speak with your insurer.
Insurance assessors are on the ground throughout the impacted communities, working closely with local government and community groups to ensure those impacted receive the information they need to get the claim process started.

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

As of midday yesterday (March 4) insurers had received 67,537 claims related to flood in South-East Queensland and New South Wales. ICA will continue to collect claims data throughout the weekend and provide an update on Monday, 7 March.

Friday, 4 March 2022

The Insurance Council of Australia (ICA) today said insurers have received 67,537 claims related to the ongoing flooding in South-East Queensland and New South Wales.

This is a 12 per cent increase on yesterday’s claims count, indicating that the rate at which claims are coming in is slowing. (See graph below)

Seventy-six per cent of these claims are from Queensland and 24 per cent are from New South Wales. New South Wales figures are still expected to increase in coming days as the impacts of the weather event become more apparent.

Eighty-two 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 just over $1 billion.

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

ICA CEO Andrew Hall today welcomed comments by National Recovery and Resilience Agency (NRRA) head, Shane Stone, calling for a review of land use planning arrangements.

Mr Hall is in Canberra today to attend a meeting of emergency service ministers and agencies along with other stakeholders.

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

The impacts of this event across two States are still coming into focus, and we are particularly concerned about the community of Lismore who have been absolutely devastated.

An army of insurance assessors are already on-the-ground helping with claims where it is safe to do so, and we are working closely with all levels of government and community to see this happen as quickly as possible.

Claims handling reforms have significantly improved the customer experience, and eligible customers in urgent need can now more quickly receive an advance cash payment of up to $5,000.

Customers may also be able to access temporary accommodation under their policy, although I acknowledge that this is particularly tight in Lismore and some other locations.

This event has just reinforced the need for a national conversation about what we build and where we build it, and to that end I welcome comments by NRRA head Shane Stone today and look forward to taking up this issue with State and Federal Governments in coming months.

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