Australian insurers back 2022 flood inquiry reforms, pledge action

Australian insurers back 2022 flood inquiry reforms, pledge action | Insurance Business Australia

Catastrophe & Flood

Australian insurers back 2022 flood inquiry reforms, pledge action

Inquiry led to 86 recommendations

Catastrophe & Flood

By
flooded homes, flood-damaged homes

The Insurance Council of Australia (ICA) has expressed support for the recent report by the House of Representatives Standing Committee on Economics, which reviewed how the insurance sector handled claims from the 2022 floods.

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ICA reacts to 2022 flood inquiry findings

The report’s key recommendations include removing state taxes on insurance, increasing government funding for resilience and disaster mitigation, and implementing stricter planning measures to restrict construction on flood-prone land.

The ICA has welcomed these changes, noting they would help lower premiums and provide better protection for communities at risk of future extreme weather events.

Although more than 300,000 claims were lodged after the floods, the report noted some customers experienced service issues. Insurers have apologised to those affected and committed to improving service through investments in staffing, training, and updated technology.

“Insurers acknowledge there were failures of systems, processes, and resourcing in response to the extreme weather events that occurred during 2022, and the industry is already taking action to address these challenges,” he said.

He added that the ICA will collaborate with governments and other stakeholders to implement the recommendations while keeping premiums affordable.

IAG reacts to 2022 flood inquiry findings

Insurance Australia Group (IAG), which owns brands like NRMA Insurance and CGU, also responded positively to the committee’s findings.

“The catastrophic 2022 floods were devastating for many people and communities, and the extraordinary number of claims we received tested our capacity to respond at this unprecedented scale,” he said.

He said that many customers received timely assistance, but others did not experience the level of service IAG strives to deliver. In response, the insurer has expanded its claims team and introduced new processes to shorten claim resolution times and better assist vulnerable customers.

ANZIIF reacts to 2022 flood inquiry findings

The Australian and New Zealand Institute of Insurance and Finance (ANZIIF) also backed the committee’s recommendations.

“We are committed to supporting the industry through quality education and professional development which continually strengthens the insurance sector,” she said.