The Insurance Council of Australia (ICA) has released an update on the industry’s efforts to address recommendations following the 2022 South-East Queensland and Northern Rivers floods, the costliest flood event in the country’s history.
The initial review, “A New Benchmark for Catastrophe Preparedness,” was conducted by Deloitte on behalf of the ICA in early 2023. It outlined seven recommendations aimed at enhancing consumer outcomes, claims handling, preparedness, governance, resourcing, and industry coordination with government agencies.
The initiative aligned with a separate federal inquiry into insurers’ handling of the 2022 floods. The report, “Flood Failure to Future Fairness,” led by MP Daniel Mulino, outlined 86 recommendations designed to change how insurers manage flood-related claims. The federal inquiry gathered input from industry representatives, consumer advocacy groups, and regulators over more than 20 days of hearings and through 81 formal submissions.
The latest report, “After the Floods – Meeting the Benchmark,” evaluated how insurers have progressed in implementing these recommendations.
According to the findings, insurers have invested in operational improvements, although progress differs across companies. While certain measures have been completed, others – particularly technology upgrades and process overhauls – are still in development.
The report highlighted several areas where insurers need to make further progress, including:
The ICA has also been working on broader industry-wide initiatives, including its Disaster Response Charter and Playbook. These frameworks aim to standardise industry responses to extreme weather events and provide structured support for policyholders.
The 2022 flood event resulted in over 240,000 insurance claims and industry-wide payouts exceeding $6.3 billion, making it the largest insured natural disaster loss in Australia’s history.
The ICA has indicated it will continue working through additional recommendations from multiple government reviews. In December, the industry body responded to the first tranche of these reports, agreeing to implement 78 out of 187 suggested reforms. Further regulatory changes and industry adjustments are expected as discussions continue.
