Insurance Council of Australia

Media releases

Building Stronger Homes third Roundtable

by

Building Stronger Homes third Roundtable

image

News release

Sunday 18 April 2021

The Insurance Council of Australia (ICA) and Master Builders Australia (MBA) will host the third Building Stronger Homes Roundtable at NSW Parliament House on Tuesday 20 April 2021.

The ICA and MBA convened the Roundtable series so both industries could lead the discussion on policy changes to make Australian homes more resilient.

The third Roundtable will focus on ways we can build new homes to better withstand extreme weather. The event will be attended by representatives from the property, real estate and architecture industries with guest speakers and panellists from the NSW Government, Standards Australia, Australian Building Codes Board, IAG and Sherridon Homes.

The forum will provide the building, insurance and aligned sectors the opportunity to identify initiatives to better protect homes.

The success of building resilience reform efforts requires effective and workable improvements to codes, standards and best practice information. Input from industry is critical to making this happen and bringing about a better system.

A better system is needed to mitigate disaster risk and safeguard consumers but must also support a sustainable building and construction industry.

Implementing the Building Confidence Report is critical to address compliance and enforcement processes in the building industry. Commitments from the Building Ministers to implement consistent reform responses in their jurisdictions will underpin the success of reforms to Codes and Standards.

ICA CEO Andrew Hall said the National Construction Code (NCC) needs to incorporate resilience as one of its objectives and adopt a position of improving the durability of homes into the future.

“Reducing the risk from the outset by ensuring the Codes and Standards take into account the resilience of homes, mitigation, infrastructure improvements and other measures will help to enhance national disaster resilience and recovery,” Mr Hall said.

MBA CEO Denita Wawn said it is important that reforms to land planning are also made across the country to ensure homes are able to withstand the local natural hazard risks.

“Local and State Governments need to work together to reform their planning frameworks so there is better guidance for home owners about local natural hazard risks and what they can do to mitigate these,” Ms Wawn said.

The fourth and final Building Stronger Homes Roundtable will be held in June 2021.

Useful links

Contact us
icon Lorem ipsum
icon Ducimus qui blanditlls
icon Lorem ipsum
icon Ducimus qui blanditlls

Insurance Council declares Catastrophe for Cyclone Seroja devastation

by

Insurance Council declares Catastrophe for Cyclone Seroja devastation

image

News release

Wednesday April 14, 2021

The Insurance Council of Australia (ICA) has this morning declared an Insurance Catastrophe for impacted parts of Western Australia from Tropical Cyclone Seroja. The cyclone made landfall late Sunday with the coastal town of Kalbarri, taking the brunt of Seroja, as did the community of Northampton.

The ICA’s Catastrophe declaration ensures insurance claims from the impacted areas of Western Australia are prioritised by all insurers.

A Catastrophe declaration means:

  • Claims from affected policyholders will be given priority by all insurers
  • Claims will be triaged to direct urgent assistance to the worst-affected property owners
  • The ICA’s disaster hotline is activated 1800 734 621.
    The ICA hotline offers assistance to policyholders if they are uncertain of their insurance details or have general enquiries about the claims process.
  • ICA representatives have been mobilised to work with State and local government and emergency agencies to assist affected policyholders
    Insurers have mobilised their disaster response specialists to assist affected customers with claims and assessments.
    Assessors are waiting to move into affected communities as soon as emergency services give the go ahead
    An industry taskforce is established to identify and address issues arising from this catastrophe

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

TC Seroja has severely damaged homes, businesses, tele-communications, and road infrastructure as well as the electricity service, across a number of West Australian communities. Access to areas north of Geraldton is limited, so it is too early to understand the extent of the damage to property in the affected region.

Insurers have received just over 700 claims, as yet there is no estimated loss dollar figure as severely impacted areas are currently inaccessible. The ICA expects a substantial increase in claims as soon as tele-communications and power is restored in coming days to affected areas. Importantly, this event has impacted a region not normally affected by cyclones, and the destruction of the built environment is severe.

This is the third insurance Catastrophe declaration for 2021. The first being the north-east Perth Hills bushfires in early February, estimated losses currently stand at more than $85million from 995 claims.

Followed by the NSW and SE QLD Floods of late March with estimated losses of $600 million and over 40,000 claims.

The insurance industry declares a Catastrophe to activate services and support for affected home and business owners and reassure them that their insurer will be there to assist with their recovery.

Insurance and cyclone damage – what to do when you return to your property:

  • Safety is the priority - don’t do anything that puts anyone at risk
  • Only return to your property when emergency services give the go ahead
  • Stay away from downed power lines, poles and wires, and fallen trees
    If your home is unsafe, notify your local emergency services and check with your insurance company if you can claim temporary housing expenses
  • If water has entered the property, don't turn on your electricity until it has been inspected by an electrician
  • Contact your insurance company as soon as possible to lodge a claim and seek guidance on the claims process
  • Start the clean-up but first take pictures or videos of damage to the property and possessions as evidence for your claim
  • Keep samples of materials and fabrics to show your insurance assessor
  • Remove water damaged goods from your property that might pose a health risk, such as saturated carpets and soft furnishings
  • Make a list of each item damaged and include a detailed description, such as brand, model and serial number if possible
  • Store damaged or destroyed items somewhere safe
  • Speak to your insurer before you attempt or authorise any building work, including emergency repairs, and ask for the insurer’s permission in writing. Unauthorised work may not be covered by your policy
  • Do not throw away goods that could be salvaged or repaired
  • Check your contents policy for food spoilage cover, you may be able to make a claim due to power outage.

Useful links

Contact us
icon Lorem ipsum
icon Ducimus qui blanditlls
icon Lorem ipsum
icon Ducimus qui blanditlls

High Court agrees to hear arguments in BI test case

by

High Court agrees to hear arguments in BI test case

image

News release

Thursday 25 March 2021

The Insurance Council of Australia (ICA) today welcomed the High Court’s request to hear oral arguments on the application for special leave to appeal the NSW Court of Appeal’s recent judgment in the first business interruption test case.

The insurance industry remains of the view that pandemics were not contemplated for coverage under most business interruption policies and that the Quarantine Act exclusion excludes COVID-19 related claims.

The Court today indicated arguments will be heard on a date to be determined in May or June at the earliest.

There are other issues concerning the interpretation of business interruption policies that also need to be resolved to determine whether policyholders will ultimately be covered, which is why a second test case has been commenced in the Federal Court of Australia.

The second test case will determine the meaning of policy wordings in relation to the definition of a disease, proximity of an outbreak to a business, and prevention of access to premises due to a government mandate, as well as policies that contain a hybrid of these type of wordings.

The Federal Court is expediting the second test case, proposing that the trial take place in the first half of September and any appeal be dealt with the Full Court of the Federal Court in the first week of November.

This means that insurers and policyholders will have certainty on most substantial issues in 2021 and reflects the importance of this case to all relevant policyholders and insurers, not just parties to the proceedings.

The industry will meet the costs of policyholders in the second test case, as it did in the first test case and will for any appeal.

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

Today’s decision is a welcome next step in this important process and the insurance industry looks forward to presenting what we believe is a compelling case based on a solid legal framework.
Given this issue relates to a policy exclusion for which insurers have not been collecting premiums, seeking reinsurance or collecting reserves, there is a strong public interest benefit in the High Court hearing oral arguments.
Once final rulings have been obtained from the courts, insurers are committed to applying the relevant principles in an efficient, transparent, and consistent way when assessing claims.

Useful links

Contact us
icon Lorem ipsum
icon Ducimus qui blanditlls
icon Lorem ipsum
icon Ducimus qui blanditlls

Insurance catastrophe extended to SE Queensland

by

Insurance catastrophe extended to SE Queensland

image

News release

Wednesday 24 March 2021

The Insurance Council of Australia (ICA) has today extended the previously declared insurance catastrophe to include South East Queensland, in order to prioritise support for the growing number of policyholders in the region affected by extreme weather.

The ICA on 22 March declared an insurance catastrophe across large parts NSW.

Policyholders in NSW and Queensland have lodged more than 17,000 claims as of 9.30am today, with 15 per cent from Queensland.

The ICA estimates the total value of the claims across both states at $254.2 million, based on the average cost of claims from previous similar events. (Please note: this estimate is not based on the value of the actual claims.)

  • 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
  • The ICA’s disaster hotline has been activated – 1800 734 621 – to assist policyholders if they are uncertain of their insurance details or have general inquiries about the claims process. (Please note: this is not a claims lodgement service.)
  • ICA representatives will be mobilised to work with local agencies and services and affected policyholders as soon as emergency services say it is safe to do so
  • Insurers will 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 has been established to identify and address issues arising from this catastrophe

Useful links

Contact us
icon Lorem ipsum
icon Ducimus qui blanditlls
icon Lorem ipsum
icon Ducimus qui blanditlls

NSW flood insurance update

by

NSW flood insurance update

image

News release

Tuesday 23 March 2021

Policyholders have lodged 11,700 insurance claims associated with the devastating storms and flooding in NSW, with further claims being made since those numbers were reported at 9.30am, the Insurance Council of Australia (ICA) reported today.

The claims show the areas with the most claims are the NSW mid-north coast towns of Port Macquarie, Kempsey, Laurieton, and Taree, and west of Sydney around Penrith and in the Hawkesbury-Nepean valley.

It is too early to estimate the cost of the damage as access to inundated properties is restricted and many remain isolated, however as a point of comparison insurers paid out almost $1 billion in related to the February 2020 east coast storms and flooding event.

Following the 2012 Brisbane floods insurers now use a standard flood definition for home building and contents policies.

Policyholders must make an explicit decision to exclude flood when buying or renewing a policy and some insurers will not provide cover that does not include flood.

But policyholders who have opted out of flood cover are still covered for storm-related damage and are encouraged to contact their insurer to obtain an assessment of their particular circumstances.

Policyholders with injured livestock do not need to wait for an assessor to visit the property before euthanising animals, but they should contact their insurer as soon as possible and keep a record before disposing of deceased livestock.

With respect to South East Queensland, the ICA continues to work closely with members to determine if a catastrophe declaration is required for that area.

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

This remains an active natural disaster and it will take some time to gain a clearer picture of the damage.

Insurers expect a large number of claims will be lodged in coming days as property owners begin returning to homes and businesses.

We encourage policy holders to contact their insurer as soon as practically possible even if they have not been able to return to their home.

Insurers are already contacting policy holders in impacted areas to help with the claims process and providing temporary accommodation to residents who have been displaced.

For policyholders who are unable to determine their insurer, the ICA is operating a hotline (1800 734 621) to help link them with their insurer.

Insurance and flood damage – what to do when you return to your property:

  • Safety is the priority - don’t do anything that puts anyone at risk
  • Only return to your property when emergency services give the go ahead
  • If water has entered the property, don't turn on your electricity until it has been inspected by an electrician
  • Contact your insurance company as soon as possible to lodge a claim and seek guidance on the claims process
  • You can start cleaning up but first take pictures or videos of damage to the property and possessions as evidence for your claim
  • Keep samples of materials and fabrics to show your insurance assessor
  • Remove water or mud-damaged goods from your property that might pose a health risk, such as saturated carpets and soft furnishings
  • Make a list of each item damaged and include a detailed description, such as brand, model and serial number if possible
  • Store damaged or destroyed items somewhere safe
  • Speak to your insurer before you attempt or authorise any building work, including emergency repairs, and ask for the insurer’s permission in writing. Unauthorised work may not be covered by your policy
  • Do not throw away goods that could be salvaged or repaired

Useful links

Contact us
icon Lorem ipsum
icon Ducimus qui blanditlls
icon Lorem ipsum
icon Ducimus qui blanditlls

Insurance catastrophe declared for parts of NSW

by

Insurance catastrophe declared for parts of NSW

image

News release

Monday 22 March 2021

The Insurance Council of Australia (ICA) has declared a Catastrophe for large parts of NSW following the devastating storms and flooding of the last few days.

The ICA’s Catastrophe Declaration 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
  • The ICA’s disaster hotline has been activated – 1800 734 621 – to assist policyholders if they are uncertain of their insurance details or have general inquiries about the claims process. (Please note: this is not a claims lodgement service.)
  • ICA representatives will be mobilised to work with local agencies and services and affected policyholders as soon as emergency services say it is safe to do so
  • Insurers will 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 has been established to identify and address issues arising from this catastrophe

Insurers will continue to monitor the situation in south-east Queensland to determine if a Catastrophe Declaration is required for that area.

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

It’s too early to understand the extent of the damage to property in affected areas and to estimate the insurance damage bill, however insurers have received over 5,000 claims in the past few days.

The insurance industry has made this Catastrophe Declaration to activate services and support for affected homeowners and businesses and reassure them that their insurer is there to help.

As many areas are currently inaccessible due to floodwater, insurers are expecting further claims in coming days as emergency services allow residents to return to their properties to examine the extent of their damage and losses.

Insurance and cyclone damage – what to do when you return to your property:

  • Safety is the priority - don’t do anything that puts anyone at risk
  • Only return to your property when emergency services give the go ahead
  • Stay away from downed power lines, poles and wires, and fallen trees
    If your home is unsafe, notify your local emergency services and check with your insurance company if you can claim temporary housing expenses
  • If water has entered the property, don't turn on your electricity until it has been inspected by an electrician
  • Contact your insurance company as soon as possible to lodge a claim and seek guidance on the claims process
  • Start the clean-up but first take pictures or videos of damage to the property and possessions as evidence for your claim
  • Keep samples of materials and fabrics to show your insurance assessor
  • Remove water damaged goods from your property that might pose a health risk, such as saturated carpets and soft furnishings
  • Make a list of each item damaged and include a detailed description, such as brand, model and serial number if possible
  • Store damaged or destroyed items somewhere safe
  • Speak to your insurer before you attempt or authorise any building work, including emergency repairs, and ask for the insurer’s permission in writing. Unauthorised work may not be covered by your policy
  • Do not throw away goods that could be salvaged or repaired
  • Check your contents policy for food spoilage cover, you may be able to make a claim due to power outage.

Useful links

Contact us
icon Lorem ipsum
icon Ducimus qui blanditlls
icon Lorem ipsum
icon Ducimus qui blanditlls
The voice for a resilient Australia

We are the representative body of the general insurance industry in Australia, shaping positive outcomes for our members, our people and the community.

Subscribe to our newsletter

Acknowledgement of Country

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.
Read on

Footer

Social