Insurers Under Scrutiny for Response to Alfred Flood Claims
Insurers Under Scrutiny for Response to Alfred Flood Claims
Speaking before an upcoming Insurance Council of Australia (ICA) meeting set to address policyholder issues, Mr. Lee highlighted widespread dissatisfaction among flood-affected businesses regarding their insurance claims. According to him, while some insurers have been proactive, others are rapidly dismissing any responsibility for flood-induced damage.
Mr. Lee shared insights based on data from the state's business disaster recovery initiative. He noted a growing trend where business owners are struggling with insurance complications as they strive to recover from the calamity that hit in March. He criticized certain insurers for demanding exhaustive hydrology reports from already distressed clients and called for more efficient resolutions to these pressing claims.
Emphasizing his point, he recounted the ordeal of a local butcher whose shop faced significant damage estimated at more than $300,000. Despite having paid insurance premiums for nearly two decades, the business owner now finds himself in dire financial straits, having to cover employee wages from his depleting savings, without any incoming revenue.
According to the ICA, insurers have processed over 100,000 claims amounting to nearly $1 billion due to Alfred's impact. Hervey Bay, particularly, suffered severe consequences, leading the ICA to label the incident a catastrophe. They plan to hold a meeting in Hervey Bay on May 15 to address ongoing concerns.
Liam Walter, ICA's director of mitigation and extreme weather response, emphasized the importance of direct engagement in Hervey Bay. The council aims to ensure comprehensive support and resolution for those affected, with expectations that assessments and discussions around rebuilding are well underway by now.
Published:Monday, 5th May 2025
Source: Paige Estritori
Share this news item:
| Swiss Re Suspends New Life Insurance Operations in Australia 01 Apr 2026: Paige Estritori Swiss Re Life & Health Australia has announced a suspension of new life insurance business activities in the country, effective October 2025. This decision stems from concerns over the sustainability of Total Permanent Disability (TPD) insurance products, which have seen a significant rise in claims, particularly related to mental health. - read more |
| AIA Australia Highlights Need for Structural Reform in Life Insurance 01 Apr 2026: Paige Estritori Damien Mu, CEO of AIA Australia, has raised concerns about the sustainability of the current life insurance model, citing a significant increase in mental health claims and economic volatility. Speaking at the company's recent Thrive for Life presentation, Mu emphasised that the industry is facing structural changes driven by these factors. - read more |
| Australian Life Insurance Market Poised for Significant Growth 01 Apr 2026: Paige Estritori Australia's life insurance market is on a trajectory to reach $19.8 billion by 2029, according to a recent report by GlobalData. This growth is driven by a combination of demographic shifts, economic factors, and innovation in insurance products. - read more |
| New Legislation Prohibits Genetic Test Use in Life Insurance Underwriting 01 Apr 2026: Paige Estritori The Australian government has introduced legislation that prevents life insurance companies from using adverse genetic test results in their underwriting processes. This move addresses concerns that genetic discrimination has discouraged individuals from undergoing preventive health screenings. - read more |
| Understanding the Role of Life Insurance in Your Estate Plan Estate planning is a critical process that often goes overlooked, but it's essential for securing the financial future of your loved ones and ensuring your assets are distributed according to your wishes. It involves the careful organization and protection of an individual’s estate to minimize uncertainties and facilitate the smooth transfer of assets after their passing. While it may seem complex, understanding the basics of estate planning is necessary for every Australian adult, regardless of wealth. - read more
|
| The Savvy Consumer’s Guide to Purchasing Life Insurance in Australia As the landscape of finance and personal security evolves in Australia, the importance of being insured has never been more prominent. In a world of changing family dynamics, economic pressures, and higher living costs, life insurance stands as a bastion of support ensuring the well-being of loved ones in the event of unforeseen circumstances. The advent of the digital age has significantly shifted the manner in which Australians can shop for and secure life insurance from the comfort of their homes, offering tailored solutions with just a few clicks. - read more
|
| Common Misconceptions About Income Protection Insurance Explained Income protection insurance is a crucial financial safeguard for anyone who relies on their salary to pay the bills. It provides a substitute income if you're unable to work due to illness or injury, ensuring that your financial obligations can still be met when you're not able to earn your usual wage. - read more
|
| Important Tips to Streamline Your Income Protection Claim in Australia In today's unpredictable world, securing your financial future is more important than ever. Income protection insurance plays a pivotal role for working Australians by providing a safety net in case illness or injury prevents you from earning an income. As an essential part of your overall financial planning, understanding income protection is crucial for peace of mind and stability. - read more
|
A specific type of property insurance that covers losses and damage caused by flooding.