A delegation of Australian insurance experts and government officials, led by the Insurance Council of Australia (ICA) and the American Chamber of Commerce in Australia (AmCham), will embark on a five-day study tour to the US.
The inaugural AmCham/ICA US Study Tour will visit Washington, DC, and Sacramento, California, with the aim of addressing insurance market challenges and exploring solutions for shared risks.
This initiative seeks to tackle the economic impact of frequent and intense extreme weather events, which are issues both countries face.
Delegates will discuss the growing protection gap and the critical need for investment in resilience and mitigation measures to protect vulnerable communities. Meetings are scheduled with government agencies, elected officials, insurers, and regulators.
The tour follows a year of record-breaking extreme weather losses globally in 2023, with Swiss Re estimating total losses at US$280 billion, only US$108 billion of which were insured.
The delegation includes senior executives from IAG, Youi, Suncorp, Auto & General, QBE, Allianz, and Hollard, as well as representatives from the ICA. Bipartisan members from the Australian and New South Wales Parliaments, the Department of Prime Minister and Cabinet, and the National Emergency Management Agency are also part of the group.
The Insurance Council plans to continue these international discussions at its Annual Conference in Brisbane in October 2024, where global insurance leaders will convene.
ICA CEO Andrew Hall commented on the shared challenges faced by the Australian and North American insurance markets.
“The Australian and North American insurance markets are facing strikingly similar challenges
around affordable and available home insurance,” he said. “Rapidly growing populations, growing asset values all in areas that are vulnerable to extreme weather is testing the overall durability of the insurance market.”
He also highlighted the importance of the Australian-American relationship in addressing the protection gap in private insurance markets through closer cooperation. Updates from the delegation's bilateral meetings at the federal level in Washington, DC, and at the state level in Sacramento, California, will be shared.
“The Australian-American relationship is deep across many other areas of shared economic and defence priorities. Our shared challenge of improving the protection gap in our private insurance markets is yet another area where closer collaboration and cooperation can provide useful benefits for both countries,” he said. “We look forward to sharing updates from important bilateral meetings over the coming week at a federal level in Washington DC and at a state level in Sacramento, California.”
The ICA recently welcomed the New South Wales government’s 2024-25 Budget, which expands the state’s efforts to help communities affected by severe weather and natural disasters in building resilience.
