Insurance Council of Australia

Flood

Prepare now for La Niña

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Prepare now for La Niña

News release

Saturday, 17 September 2022

The Insurance Council of Australia (ICA) says now is the time to prepare property for what is forecast to be a wet spring and possibly summer across eastern Australia, following the declaration of a La Niña weather pattern by the Bureau of Meteorology.

The predicted La Niña would be the third in a row for eastern Australia.

In 2021 and 2022 La Niña rain patterns led to destructive floods across many communities in parts of south-east Queensland and New South Wales.

For communities with sodden soils, full catchments and flood damaged homes not yet repaired this is unwelcome news.

The 2021 and 2022 combined insurance damage bill for La Niña-generated east coast storm and flooding is at $5.92 B with more than 296,000 claims lodged.

However, there are preparatory steps that property owners can take now, particularly in areas with a history of flooding, to reduce the potential impact of the forecast heavy rain and possible flood on property, finances and wellbeing.

The Insurance Council’s top five prep steps are:

  1. Review all building, contents, and landlord insurance policies, checking cover for flood and storm. Check cover for temporary accommodation for people and pets.
  2. Review your building and contents sum insured, checking that the insurance sum matches current replacement, repair and rebuild costs for your home and contents. Using a building and contents insurance calculator to check the current value helps avoid the shock of finding out you are underinsured after an event.
  3. Prepare a room-by-room inventory of the contents of your home. This list helps determine if you have enough insurance and can save time when making a claim.
  4. Ensure you are covered now before the forecast La Niña rain starts to fall, as some insurers may place a temporary embargo on the purchase of new policies if storm and flooding is imminent.
  5. Inspect your property and take practical steps such as clearing gutters and downpipes to help water escape to reduce the risk of overflow and damage to walls and ceilings. Ensure your roof, windows and doors can withstand heavy rainfall.

Quote attributable to ICA CEO Andrew Hall:  

The last couple of years have shown the impact that heavy rains can have on property, livelihoods, and our own well-being.

We can’t control the weather, but there are practical steps we can all take to reduce the risk that storm and flood can bring or make recovery from those events easier.

Following our top five prep steps will mean you are better prepared for the heavy rainfalls that have been predicted by the Bureau of Meteorology.

La Niña tips

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Insurers to visit flood-impacted communities for in-person customer meetings

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Insurers to visit flood-impacted communities for in-person customer meetings

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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.

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Insurance Council welcomes NSW flood inquiry findings

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Insurance Council welcomes NSW flood inquiry findings

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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.

 

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$2 billion in flood payments already made by insurers – Floods now Australia’s second costliest weather event

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$2 billion in flood payments already made by insurers - Floods now Australia’s second costliest weather event

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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.

 

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