Saturday, 14 December 2024

With school holidays on our doorstep, the Insurance Council of Australia (ICA) is urging travellers to ensure they have adequate travel insurance before venturing overseas this summer.

Having travel insurance is just as important as having a passport when it comes preparing for a holiday to another country.

Millions of people are expected to arrive and depart Australia over the coming months. Travel insurance provides peace of mind knowing you’ll be taken care of should your trip turn to disaster.

ICA and DFAT’s Travel Insurance Survey 2024 found that one in eight Aussies were not covered by travel insurance on their most recent overseas trip, with the vast majority exposed to potential underinsurance.

A few key things to check in your travel insurance policy include:

• Prescription medication. Some countries require you to carry evidence alongside your prescription medication either on your flight or at your destination. In the 2024 survey, 45 per cent of respondents travelled with prescription medication on their last trip.
• Alcohol. Alcohol coverage varies across policies. If you plan on drinking alcohol while overseas, ensure you know what you’re covered for should the worst happen. Our survey found those aged 18-29 years were significantly more likely than average to expose themselves to this risk.
• Lost items. Most policies will cover the replacement of general items, such as your mobile phone, up to a dollar value. However, if you’re travelling with expensive items, it’s important to ensure you’re insured should they be damaged or misplaced. It’s also important to know under what circumstances these items will be covered under your insurance.
• Medical emergencies. If you need medical treatment while overseas, you could be out of pocket thousands of dollars if you don’t have adequate travel insurance. Understand your cover and your risks taking into account the activities you plan on undertaking while you’re away.
• Exclusions. Understand what is and is not included in your policy. Common exclusions relate to motorcycle usage without a license, high-risk activities, pre-existing physical health conditions, losses incurred while under the influence of alcohol and losses incurred due to natural disasters. Our survey found that almost all travellers were unaware or unsure of at least one common travel insurance exclusion.

As with all insurance policies, customers are encouraged to read the product disclosure statement (PDS) in detail to understand inclusions and exclusions in relation to their travels.

Travellers should also seek advice from their travel provider and Smartraveller for up-to-date information.

Quotes attributable to ICA CEO Andrew Hall:

The Christmas holidays are always popular for travel as families venture to see loved ones.

While we can do all we can to prepare for an overseas trip, sometimes the unplanned and unexpected can happen. That’s why having travel insurance is so important.

Travel insurance can only be purchased before you travel, so getting organised before you board your flight will help make your holiday a relaxing one.

We recommend all travellers think about what they will need to be covered for – adventure sports, motor bikes, or cruises, and shop around to find the best travel insurance policy for them and their family.

Thursday, 12 December 2024

The Board of the Insurance Council of Australia (ICA) has welcomed Youi Chief Executive Officer Nathaniel Simpson as a non-executive director of the ICA Board.

Mr Simpson leads the continued growth at Youi and prior to being appointed CEO in July 2023 held several executive roles at the insurer.

His career spans roles in the financial services industry in both Australia and South Africa, and he was recently the Co-Chair of the ICA’s successful US study tour to Washington DC and California.

Mr Simpson fills the vacancy left by Chubb’s Peter Kelaher, who was recently promoted to Division President of Continental Europe, Middle East and North Africa.

Quotes attributable to ICA President Nick Hawkins:

Nat has a breadth of knowledge and experience of the insurance industry and I am pleased to welcome him to the ICA Board.

I also want to take the opportunity to thank Peter Kelaher for his service to the Board over the past three years.

Peter’s 20 years of industry experience has been of great benefit to the Board and we wish him all the best in his new role.

Quotes attributable to Youi CEO Nathaniel Simpson:

I am honoured to be appointed to the Insurance Council of Australia Board.

Youi has always been a strong advocate for consumer-centric practice and fair competition.
I look forward to working alongside the ICA Boad, driving positive change and better outcomes for consumers across Australia.

Tuesday, 10 December 2024

The insurance and collision repair industries will be consulted on a draft update to the Motor Vehicle Insurance and Repair Industry Code of Conduct (the Code), which is expected to be released in early 2025.

The updated Code, drafted by MST Lawyers in response to Dr Michael Schaper’s independent review of the Code, with guidance from the Code of Conduct Administration Committee (CAC), will seek industry feedback on the draft, with accompanying questions from the CAC.

CAC Chair George Manos said the release of the draft for consultation follows substantial feedback during the process to date, and discussion by the CAC.

“As a committee, our goal was to have a draft document out to industry this year. While we are very close to finalising it, we have recognised the importance of carefully working through each element of the code to closer align both sides.”

“This process of negotiation has taken time and ensures that the consultation draft is both workable and takes steps to address industry’s concerns” Mr Manos said.

“The CAC has met regularly since receiving the first draft of the updated Code from MST Lawyers, which included an agreement to seek input from the Australian Motor Body Repairers Association (AMBRA).”

“The CAC is now in a position to provide its feedback to MST Lawyers to enable broader industry consultation.”

“This will include the opportunity for Insurance Council of Australia (ICA) and Motor Trades Association of Australia (MTAA) members to review the draft, alongside explanatory notes on the proposed updates.”

Noting a strong level of interest across both industries, Mr Manos thanked the insurance and collision repair industries for their support during this process.

“The CAC have been working hard to provide the draft Code for broader industry consultation, and we look forward to receiving feedback on this important document in the near future.”

Background
In December 2022, the Motor Vehicle Insurance and Repair Industry (MVIRI) Code Administration Committee (CAC) announced Dr Michael Schaper had been appointed to conduct an independent review of the MVIRI Code of Conduct (Code). In May 2023, the CAC formally received Dr Schaper’s final report.

The report provided 15 recommendations in response to the review’s terms of reference which focused on:

1. The effectiveness of dispute resolution processes under the Code
2. Awareness and accessibility of the Code
3. Compliance with the Code
4. Governance of the Code and the CAC
5. Other issues pertinent to the effective governance and operation of the Code

A range of stakeholders were consulted in the review process, including government bodies, regulators such as Small Business Commissioners, members of the CAC, as well as the insurance and repair industry.

Since its inception in 2006, the Code has undergone multiple reviews to ensure it remains fit-for-purpose, with the last review undertaken in 2017.

A copy of Dr Schaper’s report can be found on the Motor Vehicle Insurance and Repair Industry Code of Conduct website at www.abrcode.com.au/resource-centre as well as the MTAA website www.mtaa.com.au and the ICA website at www.insurancecouncil.com.au.

Contact:
MVIRI CAC Chair George Manos
Phone: 0411 014 428
Website: www.abrcode.com.au/contact-us

Thursday, 15 August, 2024

The Insurance Council of Australia (ICA) and the Planning Institute of Australia (PIA) have come together to call on local, state and federal governments to reduce vulnerability to natural hazards and progress much needed reforms against a backdrop of growing housing challenges.   

Experts from government, financial services, property and community gathered in Brisbane at the co-hosted 2024 National Industry Roundtable: Land Use Planning and Resilience to say “the time is now” for action on land use planning reforms. The landmark forum highlighted the critical need for industry and government to work together to protect lives and properties from intensifying flooding, bushfires and cyclones by ensuring that low-risks areas of the country are prioritised for new development. 

Effective planning is crucial for risk reduction, as building in high-risk areas exposes more homeowners to extreme weather events and widens the insurance protection gap.   

Releasing a joint communique to help inform future land use planning settings, the industry bodies outlined key recommendations to enhance the effectiveness of land use planning in managing extreme weather risk, including: 

• prohibiting further development in high-risk flood-prone locations; 
• enhancing and adapting building standards, and; 
• taking a strategic approach to implementing home buyback programs where risks are not able to be mitigated.  

Quotes attributable to Insurance Council of Australia CEO Andrew Hall:  

Insurance is the backstop for people’s greatest financial asset, their home.  More frequent and severe disasters, a growing population, and an expansion of development into high-risk zones, is locking more risk into our financial system and putting communities in harm’s way. 

The ICA has long emphasised the importance of using a nationally consistent baseline of current and future extreme weather risk to inform where we build homes in the future, and identify which existing homes need to be relocated, retrofitted or raised to reduce community vulnerability.  

We must urgently reduce risk where we can and ensure that our planning systems are robust and forward-looking to protect our communities and assets. 

Quotes attributable to Planning Institute of Australia CEO Matt Collins: 

Good land-use planning can help make our communities more resilient to natural disasters, so critical that planners have the tools we need like up-to-date mapping and modelling. 

PIA strongly supports the need for high-quality strategic plans that clearly identify areas where we can’t manage the risks from threats like flood and fire, with clear indications of where we simply shouldn’t be building. 

We don’t just need more resilient homes – we need to plan for the surrounding landscape. 

The decisions we make on where to live and invest in the future should use the best available data and modelling, and we need governments to invest in these critical inputs.  

Today’s roundtable builds on the work of last year’s inaugural roundtable in Sydney, as more frequent and intense extreme weather events continue against the backdrop of rising demand for housing due to population growth and constrained supply. 

Land Use Planning Communique 

Thursday, 8 August, 2024

The Insurance Council of Australia (ICA) congratulates the Western Australian Government and Minister David Michael for the introduction of the towing reform bill to Parliament.

The ICA has long advocated for stronger measures to combat unscrupulous and predatory behaviour within the towing sector, including the introduction of pricing regulation to prevent price gouging.

These reforms will bring WA into line with other jurisdictions and will be a win for WA motorists, who are currently charged six to eight times more for tows compared to motorists in the Eastern states.

The Insurance industry stands ready to work with the Government to ensure the prompt implementation of these reforms.

Quote attributable to Insurance Council of Australia CEO Andrew Hall:

Today’s announcement is welcome news for Western Australian motorists across the state. This addresses a key driver of cost for motor insurance in Western Australia.

The ICA and insurers have long called for reform of towing arrangements in WA to prevent price gouging and bring the State into line with other jurisdictions.

We look forward to working collaboratively with all stakeholders to ensure reforms are implemented promptly and effectively for the benefit of all WA motorists.

Thursday, 20 May 2021

Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat. Duis aute irure dolor in reprehenderit in voluptate velit esse cillum dolore eu fugiat nulla pariatur. Excepteur sint occaecat cupidatat non proident, sunt in culpa qui officia deserunt mollit anim id est laborum:

• Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua
• Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua
• Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua

Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat.

Duis aute irure dolor in reprehenderit in voluptate velit esse cillum dolore eu fugiat nulla pariatur. Excepteur sint occaecat cupidatat non proident, sunt in culpa qui officia deserunt mollit anim id est laborum.

PDF- ICA releases independent paper on commercial insurance issues