Following days of rain and flooding across north Queensland, some communities are beginning the long clean-up. Ingham, one of the worst affected towns, is accessible again. On Monday afternoon, the Insurance Council of Australia (ICA) said the total number of damage claims so far is 4980.
Insurance Business asked Mike Hunneyball (pictured above) for his assessment of the flooding. Hunneyball is operations chief engineer for FM, the multinational commercial property insurer.
“North Queensland has a history of flooding, but the current situation appears to be particularly challenging,” he said. “The Insurance Council of Australia has declared the floods as a ‘significant event’, underscoring their severity.”
Melbourne-based Hunneyball said early indications from damage assessments suggest these floods are the worst experienced in the region for a number of years. However, one positive piece of news for brokers and their insureds, he suggested, is that detailed flood maps are now available to the insurance industry.
“It is important that the public are aware and use these resources to help them in their flood preparation,” he said.
For Hunneyball and his firm, the north Queensland floods underscore the importance of flood preparation.
“Brokers play a crucial role in helping clients understand and mitigate flood risk,” he said. “They should ensure that clients understand the potential impact of flooding on their properties and have a clear plan in place.”
Hunneyball said this involves outlining the significant consequences that flood damage could have on business operations and customer relationships.
There are also other reasons for flood preparation, he said, apart from minimising physical damage and business disruption.
“Brokers should highlight the benefits of preparedness, such as improved insurance terms and conditions and the competitive advantage of resilience,” said Hunneyball.
The operations chief engineer said a well-executed plan, including supply chain contingencies, can enable businesses to recover faster than competitors, minimising downtime and disruptions.
Hunneyball said it’s important that businesses, including small and busy SMEs, designate someone with authority, for example a member of senior management, to activate the flood action plan “and initiate a shutdown if needed.”
“FM recommends that businesses conduct regular practice drills, to ensure a swift and effective response in a real flood event,” he said. “Senior management should educate and train employees, whilst also leveraging the expertise and resources offered by insurance companies.”
Hunneyball said insurers can provide training materials and guidance to support businesses in developing robust flood action plans.
FM shared with IB nine steps a business can take to protect a property against flood risks.
Create a detailed Flood Emergency Response Plan (FERP) outlining evacuation procedures and communication strategies. This plan will enable you to know exactly who does what if flooding hits.
A well-trained team is your best defence. Equip your emergency responders with the skills and tools they need to handle flood-related emergencies. Regular drills are essential.
Understanding your specific flood risk, including warning times, is crucial. How much warning time will you have? How deep could the water get? This knowledge empowers you to make informed decisions and minimise potential damage.
Identify and relocate high-value items to safer locations. This proactive measure minimises potential losses during flooding events.
Regularly inspect and clear roof, floor, and yard drains to prevent blockages and water buildup. Proper drainage is critical in mitigating flood risks.
Instal approved flood abatement products, such as barriers and protective equipment, to fortify your facility against flood damage.
Vigilance is key. Monitor flood conditions closely and keep the emergency response team leader informed and ready to initiate response actions.
Move stock, equipment, and vehicles to safe areas or elevate them above anticipated flood levels. Implement flood-proofing measures for critical infrastructure that cannot be relocated.
Shut off electricity and gas connections during flooding to reduce the risk of fires. Take proactive steps to safeguard against electrical short-circuiting and other hazards.
Are you an insurance broker? What challenges are you facing getting customers to develop a Flood Emergency Response Plan (FERP)?
