The House of Representatives Standing Committee on Economics is set to release its report today, October 18, reviewing the insurance industry’s response to claims from the 2022 floods.
The inquiry, initiated in August 2023, focused on insurers’ handling of claims from several major flood events in Australia in 2022, including those in southeast Queensland, northern New South Wales, the Hunter region, greater Sydney, and areas of Victoria, Tasmania, and central west NSW.
The committee gathered information through public hearings, submissions, and an online survey. These processes have now concluded.
Initially due earlier, the report’s release was extended in July, with the new deadline set for October 2024.
According to the Insurance Council of Australia (ICA), the frequency and severity of extreme weather events have steadily increased, driving up the cost of insurance. In 2022, flood events alone accounted for $6.95 billion in insured losses.
These natural disasters highlight the insurance sector’s crucial role in helping communities recover. However, the ICA also noted that extreme weather can disrupt essential infrastructure and supply chains, requiring both industry and government involvement in long-term recovery and disaster mitigation efforts.
In light of discussions on insurers’ response to 2022 flood insurance claims, the House of Representatives Standing Committee on Economics noted that the ICA provides guidance on resolving disputes with insurers, including options for internal resolution and external channels through the Australian Financial Complaints Authority (AFCA).
While the ICA offers general information, it does not provide specific advice to individual consumers or manage complaints directly. However, in response to the increasing impact of severe weather, the ICA has introduced a new General Insurance Industry Charter.
The charter outlines strategies for improving how the insurance sector prepares for, responds to, and recovers from large-scale weather-related disasters. It aims to better coordinate industry efforts without altering financial services delivery or conflicting with existing legal requirements.
The committee also noted that the General Insurance Code of Practice, which governs how insurers must interact with customers, outlines standards for handling claims and maintaining service quality.
It also advised consumers with concerns about broader issues to contact the Australian Securities and Investments Commission (ASIC). Additionally, the Financial Rights Legal Centre offers legal assistance and advice to those experiencing financial distress related to insurance.
