The ICA’s second annual Insurance Catastrophe Resilience Report uses insurer data and insights to review the last 12 months of extreme weather events and advocate for changes to reduce the impact of future events.
Flood
Climate Change Roadmap Towards a Net-Zero and Resilient Future
The ICA’s second annual Insurance Catastrophe Resilience Report uses insurer data and insights to review the last 12 months of extreme weather events and advocate for changes to reduce the impact of future events.
Insurance Council welcomes $800 million NSW flood resilience package
Insurance Council welcomes $800 million NSW flood resilience package
News release
Friday, 28 October 2022
The Insurance Council of Australia (ICA) today welcomed the joint announcement by the Federal and New South Wales Governments of an $800 million Resilient Homes Program to make homes in the Northern Rivers more resilient to flood.
Today’s announcement, in response to the February-March floods that impacted south-east Queensland and coastal New South Wales and in particular the Northern Rivers region, is further recognition by governments that significant sums are required to reduce the risks of extreme weather events to lives and property.
The joint announcement provides:
- $700 million to undertake retrofitting ($50,000 per home), house raising ($100,000 per home) or, in locations where the flood annual exceedance probability is greater than 1 in 5, home buybacks.
- $100 million for land acquisition to provide local options for those who choose to relocate through the buyback scheme.
Updated insurance data released today shows that the devastating floods caused $5.56 billion in insured losses from more than 236,000 claims, with around half of the losses borne in New South Wales. The flood is now the equal costliest extreme weather event in Australia’s history, alongside the 1999 Sydney hailstorm.
The Insurance Council has long campaigned for increased investment in and attention to this issue, and earlier this year released its report, Building a More Resilient Australia which called for state and Federal Governments to jointly invest $400 million each year over five years to improve protections against extreme weather.
Today’s announcement follows Tuesday’s Budget, which formalised the Albanese Government’s commitment to its half of this requirement, as well as establishing a forum for cooperation between the Government and the insurance sector to address extreme weather issues.
It also follows an announcement earlier this year of a similar $741 million package jointly funded by the Queensland and Federal Governments.
Comment attributable to Andrew Hall, CEO Insurance Council of Australia:
Since 2019 insurers have received more than 577,000 claims related to declared flood events to the value of $8.8 billion.
Today’s announcement is a necessary and significant investment in better protecting communities at most risk of flood, and demonstrates that both the Federal and New South Wales Governments understand the scale and complexity of the policy solutions required to begin to address this worsening threat.
We understand that making a decision to sell a beloved home is very difficult one, but we strongly encourage all of those eligible for the buyback element of the Program to take up the offer and relocate somewhere safer and more sustainable.
It is positive to see that those who were covered for flood will not be excluded from the Program.
Perhaps even more important over the long-term than the funding announced today, we are extremely pleased that the Prime Minister has asked the Premier to lead a discussion with other state and territory leaders to reform planning in this country.
For insurers to continue to provide cover at an affordable price and for property and lives to be protected, not only is action required to strengthen the resilience of existing homes and communities, but we must shift our approach to what we build and where we build it.
We look forward to participating in this discussion in coming months.
Insurance Council declares Significant Event for three States impacted by floods
Insurance Council declares Significant Event for three States impacted by floods
News release
Monday 17 October 2022
The Insurance Council of Australia (ICA) has declared a Significant Event for regions of Victoria, New South Wales and Northern Tasmania impacted by flooding.
The Insurance Council’s processes have been activated to assess and monitor the insurance claims impact of this unfolding flood event.
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.
- The ICA’s disaster hotline is activated 1800 734 621; offering assistance to policyholders if they are uncertain of their insurance details.
As this remains an unfolding weather event across three States, insurers’ priority is community safety. We strongly encourage all those impacted to put their safety first and adhere to evacuations orders.
If your property has been impacted, please contact your insurer as soon as possible to commence the claims process, even if you do not know the full extent of damage.
The Insurance Council is working with emergency services and government personnel across Victoria, Tasmania and New South Wales 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.
Comment attributable to Andrew Hall, CEO Insurance Council of Australia:
Community safety is our current priority. We strongly encourage all those impacted to ensure they listen to emergency services, evacuate if told to do so and not to return to their property until emergency services agree it is safe.
This is still a large-scale unfolding event across three States and with more extreme weather expected later this week, so we are encouraging everyone to remain vigilant and listen to any emergency warnings.
If you have been impacted by the floods, contact your insurance company as soon as possible, either by phone or online, to lodge a claim and seek guidance on the claims process.
Claim numbers are steady at the moment but may continue to climb as this event unfolds, and we are actively monitoring the situation. Insurers have significantly increased their claims team resources as the entire La Niña event has continued across the year.
What to do if your property is impacted by flooding:
- 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.
- Start the cleanup but first take many photos or video of damage to the property and contents/possessions to support a claim.
- Remove any water damaged items such as soft furnishings and carpet that might pose a health risk from the property. Take a range of photos to support a claim and then dispose of the items. Don’t throw away items that could be repaired, unless they pose a health risk.
- Make a list of each item damaged and include a detailed description, such as brand, model, and serial number if possible.
- 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.
- Do not drive your vehicle if it has suffered water damage.
Useful links
Insurance Council urges community to heed warnings as extreme weather strikes east coast
Insurance Council urges community to heed warnings as extreme weather strikes east coast
News release
Wednesday, 5 October 2022
The Insurance Council of Australia (ICA) is urging community members to prepare as forecasters warn of a high risk of flooding across New South Wales in the coming days.
The Bureau of Meteorology has warned a succession of three rainfall systems will bring downpours across the east of the country this week with parts of NSW already being hit with heavy showers and thunderstorms.
A second weather system is expected to bring storms, rain and bursts of heavy falls from Queensland to Southern Victoria from Thursday night and into Friday.
With a high chance that numerous catchments will flood, the Insurance Council is urging people to heed warnings and stay safe.
In the event of flooding, the Insurance Council urges people to:
- Stay safe – don’t do anything that puts anyone at risk
- If you have to evacuate, only return when emergency services agree it is safe
- If water has entered your 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
- Don’t worry if you can’t find your insurance papers. Insurers have electronic records and need only your name and address
- Property owners who have sustained roof damage should advise their insurer
- Don’t drive your vehicle if it has suffered water damage
- Do not drive in flood water.
The warning comes as Australia enters its third consecutive La Niña season, meaning much of the country can expect a rainy end to 2022.
The 2021 and 2022 combined insurance damage bill for La Niña generated east coast storm and flooding is at $5.92 billion with more than 296,000 claims lodged.
Comment attributable to Kylie Macfarlane, COO Insurance Council of Australia:
The Insurance Council is keeping a close watch on this unfolding weather event and are urging residents to prepare and above all put their safety first.
If your property is impacted, please contact your insurer as soon as possible to commence the claims process, even if you don’t know the full extent of the damage.
Insurers are well prepared to respond to these events, but it is clear the community needs to be better protected from worsening extreme weather and that requires greater investment in mitigation and resilience.
More than half of $5.4b East Coast Flood claims now closed
More than half of $5.4b East Coast Flood claims now closed
News release
Friday, 30 September 2022
The Insurance Council of Australia (ICA) today released new data showing more than half of insurance claims related to the February and March floods have been closed.
The latest figures reveal a 10 per cent increase from last month in claims closed, with $2.81 billion or 54 per cent of all claims now finalised for those customers impacted by Australia’s costliest flood.
Insured losses have increased slightly from last month to $5.45 billion from about 234,000 claims.
The time required to settle or resolve a claim depends on the type of claim, the assessment and analysis that’s required to make a claim decision, and the complexity of the repair or settlement. The more complex the analysis, assessment and rebuild required, the longer a claim will take to process.
Claims closure times are being impacted by the high volume of claims, a shortage of experts required to assess and manage flood claims, building labour and materials constraints, and the complexity of recovery and resilience programs delivered by both the Queensland and New South Wales governments.
The data update follows the release of the Insurance Council’s Insurance Catastrophe Resilience Report 2021-22 and research from the McKell Institute, which found extreme weather events over the past 12 months cost every Australian household an average of $1,532.
McKell’s The Cost of Extreme Weather report shows that over the last 10 years the average annual household cost of extreme weather has been $888, but that this figure is expected to jump to more than $2,500 a year by 2050.
Comment attributable to Andrew Hall, CEO, Insurance Council of Australia:
Insurers have been working hard to see claims settled and closed following the devastating February and March East Coast Floods, and we are confident this momentum will continue leading into summer.
While we remain concerned that summer forecasts a continuation of La Niña conditions, insurers are geared up and working through the current claims as quickly as possible.
We encourage Queensland, New South Wales and the Federal Government to continue to expedite their build back and buy back programs as soon as possible to give those communities certainty.
Our recent reports and research show that these events are becoming increasingly costly for Australian households, and clearly demonstrate the impact of worsening extreme weather.
To ensure Australians continue to have access to affordable insurance protection, we must increase investment in the resilience of our built and natural environments, and, in parallel, address the underlying cause of more severe weather events.
