Tuesday 5 March 2024

The Insurance Council of Australia (ICA) and insurers will hold a second round of community consultations in Far North Queensland next week to provide additional support for customers following Tropical Cyclone Jasper.

Since the storm and flood on 10 December 2023 insurers and the ICA have been in the area supporting customers directly, and in attendance at recovery centres alongside government and other support agencies.

The consultations will take place in Cairns, Innisfail and Port Douglas between 12 and 14 March 2024 and follow previous consultations and community forums held in January.

To date, insurers have received more than 9,300 claims, including approximately 53 per cent property claims, 13 per cent motor claims and 13 per cent commercial claims.

The insurer-run consultations are part of the normal catastrophe declaration process and gives customers the opportunity to hear more about the claims process generally as well as speak with their insurer directly about their claim.

Event details below:

• CAIRNS - Tuesday 12th March 10am – 6pm
  Brothers League Club Cairns
• INNISFAIL - Wednesday 13 March 10am – 5pm
  Shire Hall Concert Hall
• PORT DOUGLAS - Thursday 14th March 10am – 6pm
  Pullman Port Douglas Sea Temple Resort & Spa

Bookings are now available and policyholders are encouraged to book an appointment at www.insurancecouncil.com.au/bookings

The ICA encourages impacted policyholders to contact their insurer at any stage if they have questions or require an update on the claims process.

Quote attributable to ICA CEO Andrew Hall:

We know that communities are still recovering from the impacts of the extreme weather at the end of last year.

The ICA and insurers remain committed to support impacted customers as they navigate this difficult time, with another round of on-the-ground consultations to provide information and assistance.

Insurers continue to work alongside government stakeholders and agencies to deliver better outcomes for those in need.

Monday 4 March 2024

New data released today by the Insurance Council of Australia (ICA) shows that losses from declared insurance catastrophes over summer have reached $1.2 billion.

Ex-Tropical Cyclone Jasper impacted regions from Cape York Peninsula to Townsville from 10 to 16 December, while the Christmas and New Year storms impacted regions of Queensland, New South Wales and Victoria from 23 December to 3 January.

Insured losses from the Christmas and New Year storms have reached $968 million from nearly 90,000 claims.

More than 18,000 new claims have been lodged as a result of these storms in the last month, illustrating the time many customers take to contact their insurer and get the claims process underway.

The increase in insured losses from last month shows insurers have assessed costs and are actively working with local authorities, builders, suppliers, and engineers to expedite repairs, with 28 per cent of claims already closed.

$171 million has been paid to impacted customers, significantly higher than the $22 million paid out in January. Claims closures are proceeding as expected in line with similar past events.

While damage was widespread across three states, the average claim cost is under $10,000, which is lower than many other similar events.

Insured losses from ex-TC Jasper have reached $278 million from nearly 10,000 claims.

The average claim cost from ex-TC Jasper is around $28,000, demonstrating the severe nature of the damage and the more complex claims from this event.

Twenty-one per cent of claims from this event have been closed, with $62 million paid out to customers.

Insurers have been active in affected areas, providing community consultations, forums, and in-person claims assistance.

Data from the Valentines Day storms in Victoria is being finalised and will be available next week.

Quote attributable to ICA CEO Andrew Hall:

This data highlights the impact of both ex-TC Jasper and the Christmas and New Year storms, but also demonstrates insurers’ commitment to assessing claims and facilitating repairs.

While recovery takes time, we anticipate rebuilding efforts to commence soon if it has not already, allowing people to safely return to their homes.

We understand the frustration this process can cause, but thorough assessments and proper repairs are crucial for long-term recovery.

Claims will remain open until all works are completed and approved, which may take some time depending on the severity of the damage caused and the complexity of the claim.

Wednesday 14 February 2024

The Insurance Council of Australia (ICA) today said the decision by the Tasmanian Government to “pause” its work to reform the Fire Services Levy (FSL) was profoundly disappointing and would leave the Island State as the only jurisdiction still to tax insurance customers to pay for fire and emergency services.

The FSL adds up to 28 per cent to the cost of a diverse range of commercial insurance policies, but with a bias towards those who prudently seek financial protection against the risk of damage to their assets by fire.

The FSL adds to the cost of doing business in Tasmania and has delivered windfall gains to the Government in recent years.

According to State Fire Commission data, revenue collected from insurance customers went from $33.4 million in 2021-22 to $41.8 million in 2022-23, a jump of 25 per cent in just one year.

The same data shows that the tax take from the FSL has almost doubled since 2018-19, when it collected just $21.4 million.

Every other state has abolished or is in the process of abolishing their fire and emergency services levies on insurance.

The ICA encourages the next Tasmanian Government to continue to work with stakeholders to abolish the FSL on insurance as recommended by the Blake review and find a fairer way to find fire and emergency services.

Quote attributable to ICA CEO Andrew Hall:

Despite years of reviews, consultations, and overwhelming evidence demonstrating the levy’s unfairness and inefficiency, Tasmanians remain stuck with this outdated model of revenue raising.

Every other state has abolished or has committed to abolish similar levies leaving Tasmania as the last tax standing, further disadvantaging its businesses and their customers.

Not only is the FSL unfair, but it also discourages proper insurance coverage.
Abolishing it would enhance affordability and encourage more businesses to adequately insure their assets, ultimately benefiting the entire community.

We strongly urge the next Tasmanian Government to continue to work to abolish this unfair tax on insurance customers in the State.

Thursday 1 February 2024

The Insurance Council of Australia (ICA) today welcomed Tara Page, Chief Executive of RAA Insurance, as a Non-Executive Director of its Board.

Tara brings extensive experience to the ICA Board, having held senior leadership roles in both insurance and law.

Prior to leading RAA Insurance, she served as Chief Governance and Risk Officer and Company Secretary for the RAA Group, navigating the evolving regulatory and risk landscape for South Australia’s best-known insurer.

Previously, Tara was a partner at a leading national law firm specialising in corporate law, financial services, and mergers and acquisitions.

She has actively participated in industry governance, serving on various committees and bodies, including a six-year stint as a member of the Takeovers Panel.

Tara holds a Bachelor of Laws (with Honours) and a Bachelor of Health Sciences from the University of Adelaide.

She also holds a Graduate Diploma of Applied Finance and Investment and is a Graduate of the Australian Institute of Company Directors.

Additionally, she sits on the board of the Port Adelaide Football Club.

Quote attributable to ICA President Nick Hawkins:

I am pleased to welcome Tara to the ICA Board.

Her leadership experience, deep understanding of the insurance industry and strong governance expertise will be assets to the Board.

Tara’s local knowledge and demonstrated commitment to community engagement will be a welcome addition to the Board as we look to navigate the challenges of insurance affordability, risk mitigation and regulatory changes ahead for the insurance industry.