ICA urges action as storm and fire risks rise
ICA urges action as storm and fire risks rise | Insurance Business Australia
Catastrophe & Flood
ICA urges action as storm and fire risks rise
Representative body outlines recommendations that insurers and brokers could share with clients
Catastrophe & Flood
By
Roxanne Libatique
As summer nears, the Insurance Council of Australia (ICA) is urging property owners and renters to take steps to prepare for the upcoming storm and bushfire season.
The ICA noted that Australia experiences the bulk of its extreme weather events between October and April. Since 2013, 78% of declared insurance catastrophes have occurred during these months, and 90% of the related financial losses have been reported in this timeframe.
The Bureau of Meteorology (BoM) has already warned of heightened risks this summer. Parts of Victoria and South Australia face increased bushfire danger due to lower-than-average winter rainfall. Meanwhile, the east coast is at greater risk of storms and flash flooding, and warmer sea temperatures in northern Australia are likely to fuel severe cyclones.
ICA’s recommendations to improve extreme weather resilience
In anticipation of the extreme weather season, the ICA recommends several preventive measures that insurers and insurance brokers could share with their clients.
Additionally, householders are encouraged to create an inventory of home contents and use tools like online calculators to verify that their insurance policies provide adequate coverage for potential repair or replacement costs. Reviewing existing building and contents insurance policies is also crucial to ensure sufficient protection.
The ICA advises consumers to check for exclusions or limits in their coverage and to consult their insurer if any terms are unclear. It is also important to confirm coverage well before any severe weather warnings, as some insurers may impose temporary embargoes on new policies once extreme weather becomes imminent.
“Storm season is unpredictable, and in Australia, extreme weather can strike any place and at any time. That’s why it’s vital to be prepared and ensure your insurance cover is up-to-date,” he said.
The ICA also advises consulting local emergency services for advice on preparing for summer weather hazards and staying updated through fire and emergency agencies.
ICA introduces charter to manage rising weather risks
To address the increasing impact of extreme weather events, the ICA recently introduced a General Insurance Industry Charter.
This charter sets out principles to guide the industry’s approach to disaster preparedness, response, and recovery, while ensuring alignment with regulatory standards.
It includes key commitments such as addressing the specific recovery needs of affected communities, improving communication on claims, and coordinating efforts with government recovery initiatives
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