Thursday, 4 July 2024

As millions of Australians head to warmer countries for the July school holidays, a new survey has provided a timely reminder for holidaymakers to ensure they have the right travel insurance for their plans – particularly when it comes to alcohol consumption.

Travel insurance provides protection against unforeseen accidents, damage or loss, and should be as essential for travellers as their boarding pass and passport.

Travel insurance policies list the exclusions that may apply when a policyholder is under the influence of alcohol when an accident or loss occurs.

Many policies will cover accident or loss that occurs when the policyholder has a blood alcohol reading up to 0.19 per cent – about four times the legal limit to drive in Australia.

Despite this, the survey of 1,007 Australians who travelled overseas in the past year found:

• Of the 87 per cent of Australians who took out travel insurance on their last overseas trip, 69 per cent said they drank alcohol on that trip.
• Forty per cent of travellers were aware that alcohol consumption requirements in travel insurance policies can vary from insurer to insurer.
• Fifty-five per cent of those who took out travel insurance, knew about policy variations, and drank alcohol, were unsure about how their own travel insurance treated alcohol consumption in the event of an accident.
• One in eight Australians (13 per cent) were not covered by travel insurance at all on their most recent overseas trip.
• Younger Australians, those from low-income households, and those from culturally and linguistically diverse backgrounds had higher than average propensity to travel uninsured.

The survey was undertaken by Quantum Market Research for the Insurance Council of Australia (ICA) and the Department of Foreign Affairs and Trade’s Smartraveller.

Quote attributable to ICA CEO Andrew Hall:

When you are planning your overseas holiday travel insurance is a must-have, as is ensuring that you are covered for the activities you have planned.

While enjoying a drink or two is a key part of holidaying for millions of Australians, travellers should be aware of what they are covered for so that a broken bone doesn’t lead to a broken bank account.

Travellers should make sure they read their policy documents so they understand what they’re covered for, whether that involves drinking alcohol, going for a hike or riding a motorcycle.

Shop around, compare options, and ask questions to find the right coverage so the trip of your dreams doesn’t become a nightmare.

Tuesday, 18 June 2024

The Insurance Council of Australia (ICA) has today welcomed the significant funding for resilience in the New South Wales Government’s 2024-25 Budget as a positive step for communities that should support efforts to improve insurance affordability.

The $5.7 billion four-year recovery and resilience package includes $525 million towards the Resilient Homes Fund to be rolled out across the Northern Rivers and Central West regions, which will help reduce the risk of flood damage to homes and help protect lives in some of the most at-risk areas of the country.

$87.4 million for the Resilient Lands Program will address flood recovery and future planning in the Northern Rivers region and unlock new land for development and relocating homeowners in high-risk flood zones.

The commitment to further investment in resilience and mitigation measures to protect communities against extreme weather comes as updated insurance data shows that catastrophic extreme weather events in NSW over the past two years has caused around $4 billion in insured losses.

The ICA also welcomed the Government’s recommitment to remove the Emergency Services Levy (ESL) – an unfair burden on insurance customers amidst a cost-of-living crisis.

New South Wales has the highest rate of insurance taxes in the country with insurance customers hit with both Stamp Duty and the ESL, which means they pay 20 to 40 per cent more for insurance than any other state or territory.

The Budget Papers show that without reform the Government would collect more than $12 billion from insurance customers over the forward estimates – around $5 billion through the ESL and $7.1 billion through stamp duty.

The reforms to ESL currently underway will reduce this burden on insurance customers and bring insurance tax arrangements into line with every other mainland state or territory.

Quote attributable to Insurance Council of Australia CEO Andrew Hall:

Today’s budget announcements are important investments in the future of New South Wales communities and should improve insurance outcomes in the State.

By prioritising resilience initiatives, the Government is taking a proactive approach to safeguarding lives and property from the increasing threat of extreme weather events.

The Government’s recommitment to removing the ESL is welcome and will ease the burden on New South Wales insurance customers.

For years the ESL has unfairly penalised insurance customers in the State, who because of flood risk already pay some of the highest insurance premiums in the country.

Monday, 17 June 2024

The Insurance Council of Australia (ICA) has outlined its support for strengthening the General Insurance Code of Practice (Code) in a number of areas, including financial hardship, customer vulnerability, and claims handling.

The proposed changes are included in the peak insurance body’s submission to the Independent Code Review Panel, which is currently undertaking a three-yearly review of the Code.

First introduced in 1994, the Code sets out the standards that general insurers must meet when providing services to their customers and the timeframes for insurers to respond to claims, complaints and requests for information from customers.

The ICA’s submission to the Code Review draws on the views of the organisation’s members, who collectively provide around 90 per cent of all general insurance in Australia.

Proposed changes include:

• Enhanced financial hardship provisions to support customers with premium relief options.
• Expanded definitions of vulnerability for greater inclusion of LGBT customers and to recognise the impact of financial abuse and trauma.
• Improved identification of people most at risk of financial abuse and trauma, particularly after catastrophic weather events.
• Expanded review timeframes for claim decisions, for all general insurance claims and in particular those made following catastrophic weather events
• Allowing insurers to give updates on the progress of a claim that are more meaningful and useful for customers.

Given the number of significant reviews and inquiries currently underway, the ICA has proposed that any changes to the Code should wait until these reviews and their recommendations are finalised.

The submission supports a principles-based Code to allow insurers the flexibility to offer support and solutions tailored to customers’ particular vulnerabilities and circumstances.

Quote attributable to ICA CEO Andrew Hall:

The General Insurance Code of Practice is a vitally important document for our industry and its customers, providing guidance and setting expectations for insurers and policyholders alike.

The Insurance Council’s submission to the Independent Review Panel, which has been drafted in consultation with our members, proposes sensible and workable solutions for strengthening the Code while maintaining its operational efficiency and effectiveness.

We believe these proposals would see the Code continue to prioritise customer protections while remaining responsive to our changing regulatory landscape and operating environment, which is still providing some of the most challenging circumstances for insurers and their customers ever seen.

The industry has drawn on a number of lessons learned from the record-breaking floods of 2022 and many of the declared catastrophic events since then.

Tuesday, 11 June 2024

The Insurance Council of Australia (ICA) and insurers are continuing their support for customer impacted by severe storms that struck south-east Queensland during the Christmas and New Year period. 

A third round of community consultations will be held in Jimboomba, Upper Coomera and Tamborine between 18 and 20 June, following successful events in January and March. 

Since the storms wreaked havoc across the region from 23 December 2023 to 3 January 2024, insurers and the ICA have been actively present at recovery centres, assisting affected residents. Insured damages have surpassed $1.2 billion from more than 97,000 claims lodged. 

These insurer-led consultations are part of the standard procedure following a catastrophe declaration. They offer policyholders a chance to gain a clearer understanding of the claims process and an opportunity for policyholders to discuss specifics about their claims directly with their insurer. 

• Jimboomba: Tuesday, 18 June from 9am to 5pm at the Jimboomba Community and District Hall, Johanna Street and Honora Street, Jimboomba. 
• Upper Coomera: Wednesday, 19 June from 10am to 6pm at The Well Community Centre, 58 Highland Way, Upper Coomera. 
• Tamborine: Thursday, 20 June from 7:30am to 3pm at Vonda Youngman Centre, 2-3 Knoll Road, Tamborine Mountain. 

Policyholders are encouraged to book an appointment in advance: www.insurancecouncil.com.au/bookings    

Quote attributable to ICA CEO Andrew Hall: 

These storms significantly impacted households and businesses across south-east Queensland, and insurers remain committed to supporting those customers who were affected throughout their recovery journey. 

We’re pleased to report that nearly half of all claims have already been finalised, and insurers are working diligently to get the remaining families, businesses and communities back on their feet.

Monday, 3 June 2024

New data from the Insurance Council of Australia (ICA) confirms that insurance customers in New South Wales are shouldering a significant financial burden not faced in other states, with an average additional charge of $305 on home and contents policies to pay the Emergency Services Levy (ESL).

The new data is contained in the ICA’s submission to New South Wales Treasury as part of the Government’s abolition of the ESL. It shows New South Wales insurance customers will be significantly better off once the Levy is abolished, as announced by the Minns Government.

Analysis of insurers’ pricing data shows that the ESL directly adds each year an average $252 to home and contents policies, $633 to commercial building and contents policies, and $922 to commercial building policies.

When factoring in the compounding effect of GST and stamp duty on top of the ESL, this cost rises to $305 for home and contents policies, $766 for commercial building and contents policies and $1,200 for commercial building policies.

Furthermore, the ICA’s analysis underscores that the design of the ESL disproportionately burdens those who are least able to afford it and does not fairly reflect the potential need for emergency services.

The Insurance Council has welcomed the Government’s announced reform of the tax and the opportunity to engage in the consultation process to remove the ESL on insurance and replace it with fairer funding arrangements.

Quote attributable to Insurance Council of Australia Chief Operating Officer Kylie Macfarlane:

The Insurance Council commends the Minns Government’s decision to abolish the ESL and find a fairer way to fund emergency services and a more equitable system for all.

This decision is a major win for insurance affordability in the state.

This latest data highlights just how much this unfair tax is impacting the pockets of policyholders across the state and their ability to obtain appropriate cover.

The removal of the ESL will significantly enhance insurance affordability, encouraging more families and businesses to secure cover for their most valuable assets and be protected when the unexpected occurs.

We commend New South Wales Treasurer Daniel Mookhey for leading the discussion to replace the ESL and we look forward to continued involvement in this important reform.

Monday, 3 June 2024

The Insurance Council of Australia (ICA) and insurers will once again be on the ground in Far North Queensland next week to assist residents and businesses affected by Ex-Tropical Cyclone Jasper. 

This marks the third phase of community consultations since Ex-TC Jasper, which struck as a category 2 system on 13 December 2023, causing widespread damage and flooding. 

Categorised by insurers as Catastrophe 232, the event has resulted in 9,885 claims which have caused an estimated $354 million in insured losses. 

Representatives from the ICA and insurers will be available for face-to-face consultations to provide support and claims assistance to affected individuals and businesses at the following locations: 

• Cairns: Tuesday, 11 June from 10am to 6pm at the Brothers League Club Cairns, 99 – 107 Anderson Street, Manunda. 
• Port Douglas: Wednesday, 12 June from 10am to 6pm at the Pullman Port Douglas Sea Temple Resort and Spa, Mitre Street, Port Douglas. 
• Mossman: Thursday, 13 June from 8:30am to 2:30pm at the Mossman Shire Hall, 6 Mill Street, Mossman. 

Policyholders are encouraged to book an appointment in advance: www.insurancecouncil.com.au/bookings   

Quote attributable to ICA Chief Operating Officer Kylie Macfarlane: 

Homeowners and businesses are facing ongoing challenges as they continue to recover from Ex Tropical Cyclone Jasper.  

That’s why it’s important for insurers to continue to be present in the community, providing support and guidance through the claims process. 

These in-person consultations provide an opportunity for policyholders to receive personalised assistance. 

We encourage impacted policyholders to make a booking with their insurer through the Insurance Council’s online bookings system.