The Insurance Council of Australia (ICA) is urging residents and small businesses in Broken Hill and nearby areas affected by last week’s weather-induced power outage to contact their insurers or brokers to explore their potential for filing claims.
Although insurers have received only a few claims so far, most are related to food spoilage. The ICA noted that many home and contents insurance policies cover food spoilage without requiring policyholders to pay an excess, though individuals should confirm coverage with their insurers.
At present, reports of physical property damage remain low. However, the ICA is advising anyone who suspects their property or vehicle has been damaged to begin the claims process as soon as possible, even if the full scope of the damage is not yet determined.
The ICA said it has been in communication with relevant New South Wales (NSW) government departments and is closely monitoring claims developments with its member insurers.
Andrew Hall, CEO of the Insurance Council of Australia, encourages residents and small businesses in the far west of NSW impacted by the weather event or the subsequent power outage to contact their insurer or broker to determine if they have a claim.
“Insurers stand ready to assist, and the Insurance Council continues to engage with the NSW Reconstruction Authority,” he said.
In response to the escalating costs associated with extreme weather, the ICA has introduced a new General Insurance Industry Charter.
The charter aims to streamline industry-wide disaster preparedness, response, and recovery while ensuring it remains compliant with existing legal frameworks and service regulations.
The ICA pointed to the growing frequency and severity of extreme weather events, which have significantly impacted both the cost and availability of insurance, particularly in high-risk areas.
Since the 2019-2020 bushfire season, insurers have paid out $19 billion across 20 major insurance catastrophes. In 2022, floods alone accounted for $6.95 billion in insured losses, and events like the 2021 Mansfield earthquake resulted in over $100 million in claims.
According to the ICA, the insurance industry plays a crucial role in managing the financial risks of extreme weather while supporting recovery efforts. Larger-scale disasters often require coordination with governments due to the widespread impact on infrastructure and essential services.
