Insurance Council of Australia

Severe Weather

ICA and insurers host forums to support south east Queenslanders

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ICA and insurers host forums to support south east Queenslanders

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News release

Friday, 19 January 2024

The Insurance Council of Australia (ICA) will host community information forums and insurer consultations in three south-east Queensland communities impacted by the Christmas to New Year storms, later this month.

The forums and in-person consultations, to be held from 31 January to 2 February, will be held in Upper Coomera, Jimboomba and Tamborine Mountain, providing information and support for customers impacted by the storms.

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

Upper Coomera Centre - Multipurpose Hall: Wednesday, 31 January

  • Consultations: 12pm to 5pm
  • Townhall: 6pm 

Jimboomba Community and District Hall: Thursday, 1 February

  • Consultations: 12pm to 5pm
  • Townhall: 6pm

Vonda Youngman Centre: Friday, 2 February

  • Consultations: 12pm to 5pm
  • Townhall: 6pm

Representatives from various insurance companies will be present to answer questions and provide individual assistance.

Insurance customers can also seek advice from Legal Aid and the Australian Financial Complaints Authority (AFCA), who will also be present.

Policyholders in surrounding areas are encouraged to book an appointment. To check availability and to book, visit www.insurancecouncil.com.au/SEQBookings

Quote attributable to ICA CEO Andrew Hall:

These storms caused significant damage across the Gold Coast hinterland and Scenic Rim region, resulting in more than 45,000 insurance claims, and the recovery has been challenging due to infrastructure damage.

These forums offer a valuable opportunity for policyholders to connect directly with their insurer, learn about the claims process, and access resources to navigate their recovery.

The ICA and insurers are committed to supporting insurance customers through this difficult time.

Our representatives will be available at the forums to provide assistance and ensure everyone receives the support they need.

 

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icon Catastrophe 233: Christmas and New Year Storms

Catastrophe Declaration extended to include New Year storms

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Catastrophe Declaration extended to include New Year storms

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News release

Wednesday, 3 January 2023

The Insurance Council of Australia (ICA) has today extended its Insurance Catastrophe declaration for the recent storms, rain and flooding to 3 January, highlighting the extensive impact of severe weather across the east coast from Christmas through to the New Year.

Almost 38,000 insurance claims have been lodged following the weather that has impacted Queensland, New South Wales, and Victoria since 23 December.

The ICA’s Catastrophe declaration – known as Cat 233 – serves to escalate and prioritise the insurance industry’s response for affected policyholders.

Under the Catastrophe declaration:

  • Claims from affected policyholders will be given priority by insurers.
  • Claims will be triaged to direct urgent assistance to the worst-affected property owners.
  • ICA representatives are mobilised to work with local agencies and services and affected policyholders as soon as emergency services say it is safe to do so.
  • Insurers mobilise disaster response specialists to assist affected customers with claims and assessments as soon as emergency services say it is safe to do so.
  • An industry taskforce is established to identify and address issues arising from this catastrophe.

Data from insurers shows that the Gold Coast has seen the highest concentration of claims.

A separate declaration (Cat 232) has been made for TC Jasper and flooding in far north Queensland.

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

The volume and intensity of the storms that have impacted three states prior to Christmas has caused substantial damage.

These severe storms have caused significant stress and uncertainty to those impacted, and insurers are already assisting customers with claims and the recovery process.

Insurance assessors are being deployed to the most recently affected communities from today.

Those impacted should contact their insurer even if they don’t know the full extent of the damage.

Damaged contents such as furnishings and carpet do not need to be retained, but keeping a record or sample will help with the claims process.

The ICA and insurers are working with government authorities to make sure insurance customers get access to information and assistance as soon as possible.

 

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Preparing for bushfire season

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Preparing for bushfire season

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Before a bushfire 

The best time to prepare for a bushfire is before the bushfire season starts.

People living in bushfire-prone areas should take steps to minimise their risk and prepare a bushfire plan – include evacuation and communication plans and a disaster supply kit.

Local fire services – rural and metropolitan – can provide guidelines on how to best prepare your property for bushfire season. 

This includes practical measures such as trimming trees and shrubs, mowing grass and removing cuttings, removing materials that can burn around your home, clearing debris from gutters and ensuring you have hoses and a reliable source of water.

Before bushfire season you should also:

  • Inspect your property and take practical steps to reduce risk such as cleaning your gutters, keeping lawns and gardens maintained and cleaning up green waste items around the property.
  • Use a building and contents insurance calculator to ensure your insurance cover adequately covers estimated costs to repair, rebuild or replace home and contents, vehicles and any outbuildings on your property in event of a disaster.
  • Prepare a room-by-room inventory of the contents of your home. This list helps determine if your assets are adequately protected and can save time when making a claim.
  • Review all building, contents, and landlord insurance policies. Make sure you understand what cover you have, as well as any exclusions or limits that may be a part of your insurance policy. It is important to be aware of these exclusions and to query your insurer about any part of a policy you do not understand.
  • Ensure you are covered now before bushfire threats are heightened, as some insurers may place a temporary embargo on the purchase of new policies if bushfires are imminent.

Terms to take note of

While every policy is different, there are some insurance terms, exclusions and conditions to be aware of in household insurance policies. These include:

  • Embargoes or no coverage for a set time at the start of a policy.
  • No cover for loss or damage where no flame damage has occurred, such as scorching, melting, heat, smoke, ash or soot.
  • Coverage for a burning building within a specified distance of your home.
  • Loss mitigation clauses, such as taking all reasonable precautions:
    - For the safety and protection of your building and the site.
    - To prevent injury or damage to your building or property.
    - To ensure compliance with all statutory obligations, bylaws or regulations imposed by any public authority relating to the safety of persons or property.

Ask your insurer for clarification if you need to. 

During a bushfire

If you live in a bush fire-prone area you should know the fire danger rating each day during bushfire season.

If a fire is approaching you should enact your disaster plan, leaving early if possible and taking your disaster supply kit and pets with you.

There are practical steps you can take to stay safe and minimise damage to your property during a bushfire, including turning off the gas supply, clearing leaves, twigs, bark and other debris from the roof and gutters and moving flammable items – such as woodpiles, paper, boxes, crates, hanging baskets and garden furniture – away from your home.

You should stay informed and listen to local authorities, emergency services and ABC local radio for updates. 

It is usually too late to check your insurance cover, or buy a policy, once a bushfire is heading towards your property.

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Reduce Your Risk
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What to do after a bushfire

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What to do after a bushfire

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Your safety is the priority

  • Safety is the priority - don’t do anything that puts anyone at risk.
  • If you were directed to evacuate your property, only return to your property when emergency services give the go ahead.
  • If your home is unsafe, notify your local authorities and check with your insurance company whether you can claim temporary housing expenses.

Contact your insurer even if you don't know the extent of damage

  • Contact your insurer as soon as possible to lodge a claim and seek guidance on the claims process.
  • Speak to your insurer before you attempt or authorise any building work, including emergency repairs, and ask for the insurer’s permission in writing, as unauthorised work may not be covered by your policy.
  • Do not be concerned if you can’t find your insurance papers. Insurers have electronic records and need only your name, address and date of birth.
  • If you are in urgent financial need, you can ask your insurer to fast track your claim and make an advance payment within five business days of you demonstrating your urgent financial need. Any advance payment may be deducted from the total value of your claim.

Cleaning up after bushfire

  • Before you start your clean-up take photos or video of damage to your property and contents / possessions to support your claim. 
  • Remove any damaged items from the property that may pose a health risk. Take photos or keep small samples of damaged items to support your insurance claim.
  • Don’t throw away items that could be repaired, unless they pose a health risk.
  • Make a list of each damaged item and take photos. If possible, include a detailed description, such as brand, model, and serial number. 

Useful links

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New data shows historic catastrophes would have greater impact today

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New data shows historic catastrophes would have greater impact today

News release

Wednesday, 12 September 2023

New data released by the Insurance Council has revealed that the cost of both the 1999 Sydney Hailstorm and Cyclone Tracy would far outstrip last year’s record-breaking flood if they happened today.

  • The Sydney Hailstorm, which caused $1.7 billion in insured losses when it rained cricket-ball-sized hailstones on the city in April 1999, would result in an estimated $8.85 billion in insured losses if it happened in 2023.
  • Cyclone Tracy, which killed 71 people and caused $200 million in insured losses when it struck Darwin on Christmas Eve 1974, would cause an estimated $7.4 billion in insured losses in 2023.
  • The 2022 South-East Queensland and New South Wales Floods cost $6 billion in insured losses and remain the costliest extreme weather event in our history.

The new data, calculated by Australian catastrophe modelling firm Risk Frontiers, uses methodology that normalises the losses of past insurance catastrophes to account for inflation, changes in property numbers and values, and stricter building codes, enabling insurers, reinsurers, governments, and other policymakers to better understand the likely impact of future extreme weather events.

The changes in estimated insured losses for the historic events is due to the increase in people and property across Australia, particularly in large population centres, underscoring the need for greater investment in measures to make at-risk communities more resilient to extreme weather.

Risk Frontiers has also provided updated data on historic insurance catastrophes adjusted for inflation only, allowing a comparison of actual insured losses from events over the last half century.

The new data is included in the ICA’s annual Insurance Catastrophe Resilience Report, which also examines the most pressing issue currently facing the Australian insurance industry and its customers – affordability and availability – and the clear link between risks and costs.

The report calls for increased investment in resilience and mitigation measures as part of an ongoing program to reduce risk and cost pressures, the end of development on floodplains, the broadening of home buy-back schemes to move people out of danger, improved building codes to make buildings more resilient, and reform of state taxes on insurance products to provide immediate cost relief.

Comment attributable to Insurance Council of Australia CEO Andrew Hall:

The financial impact of insurance catastrophes over the past 12 months was around one fifth of the cost of the previous record-breaking year, but more benign weather conditions should not provide false hope that the issues of worsening extreme weather risk have gone away.

This new data shows that when – not if – extreme weather events strike large population centres in the future we can expect them to have a greater impact and be more costly, making the case for risk mitigation even more pressing.

We can’t wait until disaster strikes, we need to act now by investing more to make communities more resilient, reform land-use planning and building codes and, in some cases, move people and homes out of danger altogether.

Read Full Report here

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Insurers revisit NSW Central-West flood communities

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Insurers revisit NSW Central-West flood communities

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News release

Tuesday, 7 March 2023

The Insurance Council of Australia (ICA) and insurers will be in Eugowra, Parkes and Forbes in mid-March to assist flood-impacted communities with their insurance claims.

The in-person customer meetings are part of a continuing effort by the insurance industry to assist policyholders with their flood-related claims.

These meetings are an opportunity for customers to discuss their individual claims with their insurer.

The Wednesday 22 March evening community information session in Parkes will provide an overview of the claim process and will include how to lodge a complaint.

Policyholders from surrounding areas are encouraged to attend the information session and book a consultation for individual claim assistance.

• Eugowra Bowls & Recreation Club, 5 Hill Street Eugowra
Tuesday 21 March 12pm – 8 pm in-person customer meetings with insurers.
• Parkes Services Club, 17 Short St Parkes
Wednesday 22 March 10 am – 4 pm in-person customer meetings with insurers.
Wednesday 22 March 5pm-8pm Community information session
• Club Forbes, Templar St Forbes
Thursday 23 March 12pm – 8pm in-person customer meetings with insurers
Appointments are recommended for the in-person customer meetings with insurers.

To book an in-person meeting go to www.insurancecouncil.com.au/Bookings

Quote attributable to ICA CEO Andrew Hall:

Insurers are always available by phone or online, however we know there’s great value in holding community information sessions and in-person meetings in impacted communities.

We encourage policyholders who have flood-affected properties and would like assistance to meet with their insurer.

Since mid-November more than 13,000 claims at an estimated value of $196 million have been lodged for flood damage in the region.

This includes 6552 home property claims, 4038 home contents claims and 763 motor vehicle claims.

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We acknowledge the Traditional Owners on the many lands the people of the ICA reside and work. We respect and honour Aboriginal and Torres Strait Islanders Elders past, present, and emerging.
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