Commissioned by the ICA, The McKell Institute report, The Cost of Extreme Weather, shows that extreme weather events over the past 12 months cost every Australian household.
Flood
Insurers to visit flood-impacted communities for in-person customer meetings
Insurers to visit flood-impacted communities for in-person customer meetings
News release
Monday, 29 August 2022
The Insurance Council of Australia (ICA) and insurers will be travelling to South-East Queensland and northern New South Wales flood-impacted communities during September for in-person meetings with customers affected by this year’s floods and severe weather.
The in-person meetings are an opportunity for customers to discuss the progress of their claim, and to work through any sticking points or issues they may be experiencing with their insurer at a time that suits them.
In addition to the in-person meetings, virtual meetings will be held between 9am and 4pm from Monday 12 to Friday 16 September, customers are able to book a time that suits them to talk through their claim with the ICA or their insurer by phone or video.
The in-person meetings will be held from midday to 8pm on:
- Monday 5 September at Sandgate Townhall, Sandgate (Brisbane North)
- Tuesday 6 September at Lockyer Valley Cultural Centre, Gatton
- Monday 19 September at Ex-Services Club, Mullumbimby
- Tuesday 20 September at RSM Club, Casino
- Wednesday 21 September at Ballina RSL Club, Ballina
- Thursday 22 September at Lismore Workers Sports Club, Goonellabah
Appointments are essential for both the in-person and virtual meetings. To book go to insurancecouncil.com.au/bookings
The cost of this year’s floods across SE Queensland and northern New South Wales is $5.28 billion, making it Australia’s second costliest natural disaster ever. Insurers have received around 233,100 claims across both states.
Quote attributable to ICA CEO Andrew Hall:
It is six months on from the severe weather that impacted so many people’s lives in South-East Queensland and northern NSW.
The ICA and insurers will be travelling to some of the most impacted communities to talk to customers face to face, providing an opportunity to discuss the specific details of claims and the claims process.
I know many customers welcomed the opportunity in May to meet with us and insurers when we travelled around South-East Queensland and northern NSW for in-person consultations.
Customers value the opportunity to clarify different parts of the insurance process, talk timelines and receive updates about their own claim directly from their insurer.
Insurance Council welcomes NSW flood inquiry findings
Insurance Council welcomes NSW flood inquiry findings
News release
Wednesday, 17 August 2022
The Insurance Council of Australia (ICA) has today welcomed the release of the O’Kane-Fuller Flood Inquiry and the New South Wales Government’s response to its recommendations, particularly on land use planning and the relocation of homes in the most flood-prone areas.
The report recommends significant changes directly supported by the ICA, including:
- Changes to land use planning to move homes out or harm’s way and bar residential development in some areas
- Better community data provision and education on extreme weather risks
- More research into the impacts of worsening extreme weather, including to community mental health
- More streamlined recovery grants processes
- Clear lead agency responsibility for disaster recovery
- Examining the impact of stamp duty
In a report released earlier this year, Building a More Resilient Australia, the ICA called on state governments to amend land use planning legislation to include a mandatory requirement for planning approvals to consider property and community resilience to extreme weather.
Insurers see this as crucial to strengthening resilience across communities, particularly those most at risk from flood.
In line with the O’Kane-Fuller Inquiry, the ICA’s report found too many homes are in the direct line of flood because at the time of planning and approval not enough account was given to worsening extreme weather as a result of climate change.
Building a More Resilient Australia also called for a substantial increase in investment in community and household resilience measures, which have been shown to have significant benefits for protecting property as well reduce the cost of insurance.
Comment attributable to Andrew Hall, CEO Insurance Council of Australia:
The O’Kane-Fuller Inquiry sets out the risks posed by extreme weather at a regional and local level, and if its recommendations are properly implemented will significantly enhance the State’s capability to prepare for future events.
We commend the NSW Government on its willingness to listen to the experts, make the significant investments needed, and we look forward to working with the new Reconstruction Authority.
The scale of the impact of this year’s floods, the number of previous floods in locations such as Lismore, and the increasing likelihood of further events make it imperative that the rebuild and reconstruction significantly improves the resilience of at-risk communities to future extreme weather events, including adapting some areas away from residential property if that is what is required.
We are heartened to see that the NSW Government will look at a restructure and reduction of stamp duty, which when applied to insurance has been shown to reduce adequate levels of cover.
$2 billion in flood payments already made by insurers – Floods now Australia’s second costliest weather event
$2 billion in flood payments already made by insurers - Floods now Australia’s second costliest weather event
News release
Friday, 29 July 2022
The Insurance Council of Australia (ICA) has today released new data that shows more than $2 billon has already been paid to insurance customers impacted by the February-March floods that hit South-East Queensland, the Northern Rivers and other parts of New South Wales.
The latest figures reveal insured losses have increased six per cent from last month to a record-breaking $5.134 billion.
This makes this year’s flood the second costliest extreme weather event in Australia’s history, passing 1974’s Cyclone Tracy and sitting only behind 1999’s Sydney Hailstorm, which caused insured losses of $5.57 billion (normalised to 2017 values).
In dollar terms, nearly 40 per cent of the value of all claims made has been paid to customers. Of the 230,000 claims made from the event, 36 per cent are now finalised and closed.
The average claim is $22,000, with personal claims averaging $17,000 and commercial claims averaging $71,000.
The number and value of claims is evenly split between New South Wales and Queensland.
The new data comes as the CSIRO’s one-in-a-decade megatrends report reveals the cost of natural disasters is expected to triple over the next 30 years as climate change worsens.
The report echoed calls from the Insurance Council to increase Federal and State Government investment in measures to improve household and community resilience.
The Insurance Council looks forward to the release of the New South Wales Government’s independent O’Kane-Fuller Inquiry in coming days.
Quote attributable to ICA CEO Andrew Hall:
The February and March East Coast Flood is continuing to break near 50-year records, demonstrating just how devasting this catastrophe was for so many communities.
Insurers continue to employ more people and contractors to resolve claims for impacted customers, however delays are being experienced because of a shortage of experts needed to make assessments and significant constraints on builders and building materials.
The Insurance Council looks forward to reviewing the findings of the O’Kane-Fuller Inquiry and will continue to advocate strongly for governments to increase investment in effective long-term mitigation solutions for communities at risk of flood and other extreme weather events.
The scale and impact of the increasing likelihood of further events, as detailed in the CSIRO report, make it imperative that the rebuild and reconstruction from this flood significantly improves the resilience of these communities to future extreme weather events.
NSW Labor’s Western Sydney flood package welcomed
NSW Labor’s Western Sydney flood package welcomed
News release
Monday, 25 July, 2022
The announcement today that, if elected, a future New South Wales Labor Government would invest $225 million to make Western Sydney more resilient to flooding is a welcome first step, the Insurance Council of Australia (ICA) said today.
The $225 million Western Sydney Floods Resilience Plan announced by New South Wales Opposition Leader Chris Minns today includes a plan to invest $24 million to protect communities from large scale flooding by building new levees at Peachtree Creek, McGraths Hill and Pitt Town.
Some residents of Western Sydney have experienced flooding four times in the past two years, and the region is one of the most flood-prone in Australia.
The February-March 2022 floods were Australia’s most costly flood ever causing $4.8 billion in insured losses, approximately half of which was in New South Wales. The floods that impacted parts of New South Wales earlier this month have seen $145 million in damages in impacted parts of the State, including Western Sydney.
Earlier this year the Insurance Council released its Building a More Resilient Australia report, which called for $232 million to be jointly invested by the New South Wales and Federal Governments over five years to improve property resilience to flood, storm and bushfire.
Leading actuarial consultancy Finity estimated that this investment would save governments and communities $5.6 billion to 2050, 24 times a return on investment.
Building a More Resilient Australia also included a recommendation for a $532 million local infrastructure fund to support investment across the country in projects such as levees, seawalls and floodways.
New South Wales is the only mainland state – and will soon be the only state – to levy insurance customers to fund emergency services, adding 30 to 40 per cent to the cost a premium and driving down levels of insurance coverage.
Changes are also required to land use planning and building codes to make sustained improvements to community resilience.
Quote attributable to ICA CEO Andrew Hall:
Today’s announcement by New South Wales Labor is a welcome first step and shows that political stakeholders are heeding the resilience message insurers have been giving over a long period.
New South Wales is the highest-taxing state in the country when it comes to insurance, which drives down adequate coverage at a time and in a state where we need it most.
In the lead-up to next March’s state election the Insurance Council and insurers are calling on all parties to commit to abolishing this retrograde impost.
We look forward to the New South Wales Government’s response to the O’Kane / Fuller inquiry into the February-March floods, which must include significant investment in resilience measures and changes to land use planning.
Sydney extreme rain and flood insurance update
Sydney extreme rain and flood insurance update
News release
Friday, 8 July 2022
The Insurance Council of Australia (ICA) earlier this week declared a significant event for the July 2022 extreme rain and flooding event that has impacted large parts of Sydney, the Hunter and mid-north coast.
The ICA activated a range of processes and data collection activities to assist with the assessment of the insurance impact of this extreme rain and flood event.
Insurers have received 8,415 claims (84 per cent property, 14 per cent motor and two per cent commercial), with an estimated insurance loss of $97.9 million.
The ICA encourages policyholders who have sustained damage to property, businesses, or vehicles to contact their insurer as soon as possible to start the claim process, even if the full extent of the damage is not yet clear.
Safety is the priority as people return to their properties.
- Only return to your property when emergency services give the go ahead.
- Don’t do anything that puts anyone at risk.
- 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:
- Start the cleanup but first take photos or video of damage to the property and possessions to support a claim.
- Keep samples of materials and fabrics to show the insurance assessor.
- Remove water damaged goods from the property that might pose a health risk, such as saturated carpets and soft furnishings, take photos to support a claim.
- Make a list of each item damaged and include a detailed description, such as brand, model, and serial number if possible.
- 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.
