Tuesday, 24 October 2023

Strengthening the National Construction Code to require that new homes are made more resilient to extreme weather could save an estimated $4 billion a year, a new report released today by the Insurance Council of Australia (ICA) has found.  

The Centre for International Economics (CIE) report warns that extreme weather costs to homeowners will double by 2050, as events become more severe or more frequent because of climate change. 

It found strengthening the National Construction Code (NCC) to require that new homes are made more resilient to extreme weather could reduce average annual building costs by an estimated $2 billion per year for cyclones, $1.475 billion per year for floods, and $486 million per year for bushfires.  

The report found there are clear economic benefits in making homes more resilient to bushfires, cyclones, and floods, highlighting the need for greater action to future proof Australia’s resilience to extreme weather. 

The report also calls for states and territories to reform planning rules to prevent new homes from being built in high-risk areas of the floodplain. 

The report supports the Insurance Council’s ongoing and long-term advocacy to make properties more resilient to worsening extreme weather and reform land use planning to stop further development in flood-prone locations.  

Analysis undertaken by the McKell Institute for the Insurance Council in 2022 found that economy-wide costs from extreme weather events are expected to grow by five per cent each year (before inflation) and reach a total of $35 billion annually (in 2022 dollars) by 2050. 

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

This new analysis by CIE highlights the economic benefit and opportunity of strengthening the resilience of new homes in the face of worsening extreme weather. 

Currently, minimum building standards in Australia are designed to preserve life in a catastrophic event – but they are not designed with the goal of preserving the property itself.  

As a result, our homes are not built to withstand the extreme weather events of today, let alone the future.  

We need to make our homes more resilient, and we need to avoid building new homes in vulnerable areas.

We welcome the renewed focus on resilience by the Australian Building Code Board. Strengthening our construction code is a critical solution to ensuring new homes withstand damage from floods, fires and cyclones.

Monday, 23 October 2023

The Insurance Council of Australia (ICA) and insurers will be in Adelaide on Tuesday, 31 October for in-person consultations with customers affected by last year’s River Murray floods.

The consultations will give policyholders an opportunity to meet in-person with their insurer, as well as provide useful information on the claims process and complaints avenues.

It will be the second community consultation held by the ICA and insurers since last year’s floods, which resulted in more than 2,500 claims totaling $426 million.

Of those claims lodged, around 1,500 were home property claims, 760 home contents claims and 45 motor vehicle claims.

The ICA formally declared the River Murray flooding a Significant Event in September as part of its annual Insurance Catastrophe Resilience Report.

Event details:

• Tuesday 31 October 12.00pm – 8.00pm
  The Meeting Hall at Adelaide Town Hall - 128 King William Street, Adelaide SA 5000

Policyholders from surrounding areas are encouraged to book an appointment. To check appointment availability and to book go to www.insurancecouncil.com.au/Bookings

Quotes attributable to Insurance Council of Australia CEO Andrew Hall: 

It has been almost one year since these floods and insurers are continuing to work with their customers to complete outstanding claims.

If a policyholder is needing assistance working their claims, I encourage them to attend the consultation as they offer real value to impacted policyholders and are a safe and accessible forum to raise concerns directly with an insurer.

Tuesday, 10 October 2023

As summer approaches, the Insurance Council of Australia (ICA) and the National Fire Industry Association (NFIA) are calling on building and apartment owners to stay up to date with fire protection safety and maintenance checks for commercial, industrial, and residential buildings.

Fire safety inspections of commercial and apartment buildings are crucial to ensure that fire prevention measures, such as fire exits, alarms, sprinkler systems, and fire extinguishers, are in place and functioning properly, especially as we head into the warmer summer months.

A requirement in many insurance policies is for regular inspections to be undertaken to assess the risk and ensure fire safety has been correctly assessed within a building.

If a building has not undergone its required inspections, the policyholder could find themselves without insurance cover for damage to their property or contents.

In order to maintain full insurance coverage and to ensure occupants’ safety, building owners and managers must ensure fire protection safety and maintenance checks are up to date.

For further information please visit the NFIA website.

Quote attributable to National Fire Industry Association CEO Joe Smith:

Regular fire safety checks and maintenance underpins occupant safety and asset protection.

Neglecting to undertake legally required inspections, testing and maintenance leaves businesses and property owners vulnerable to substantial financial and safety risk.

I want to stress to building owners and managers that these procedures are far more than just a box-ticking exercise.

These safety checks are key safeguards for buildings and its residents when conducted by adequately trained and certified professionals.

Quotes attributable to Insurance Council of Australia COO Kylie Macfarlane:

Regular building and fire protection maintenance should be prioritised as we head into the warmer summer months.

We know this season can lead to complacency when it comes to fire safety measures, including barbecue fires, overloaded electrical outlets, and kitchen mishaps.

It is incumbent on building occupants and owners to ensure relevant inspections and testing of fire related safety equipment are completed by industry professionals.

Conducting these routine checks not only ensures the safety of lives and the integrity of properties but also aligns with the requirements of many commercial and strata-title building insurance policies.

Monday, 9 October 2023

The Insurance Council of Australia (ICA) is pleased to announce The Hon. Stephen Jones MP, Assistant Treasurer and Minister for Financial Services, as the keynote speaker at the ICA’s 2023 Annual Conference on 12 October in Sydney.

Minister Jones last month led an insurance delegation to London and Munich, where together with members of the ICA Board he met with global reinsurers and other leaders of the insurance sector to discuss critical issues impacting insurance premiums in Australia.

Minister Jones will be among 27 diverse speakers at the conference, with experts covering a broad range of issues including insurance affordability, employment, AI, climate change, cyber risk, and the 2022 floods.

To be held at the Fullerton Hotel, Sydney, the conference is expected to draw around 400 participants, including industry leaders, regulators, and commentators in one jam-packed event.

Quotes attributable to Insurance Council of Australia CEO Andrew Hall:

This is a crucial time for the insurance industry and its customers, with the impact of three years of extreme weather events, ongoing hard market conditions, and global inflation impacting affordability and availability across all lines.

Ensuring the settings are right for Australia’s insurance industry to continue to support communities and the economy has never been more important.

The ICA’s annual conference is a great opportunity for the industry and those who impact and are impacted by it to discuss these issues, hear from experts, and look at what is over the horizon.

Following the recent delegation to the major London insurance market, we are pleased that Assistant Treasurer Stephen Jones will give the keynote address and continue the collaborative and constructive relationship we have established since the election of the Albanese Government 18 months ago.

Anyone with a stake in the insurance market are welcome to purchase one of the few remaining tickets before they all sell out.

To view the complete program, register and purchase tickets visit, 2023 Annual Conference - Insurance Council of Australia