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Professional Indemnity Insurance (PII) is a type of insurance designed to protect professionals against claims of negligence or breach of duty made by their clients. It covers the costs and expenses incurred in defending against such claims, as well as any resulting damages or compensation that may be awarded. - read more
In an era dominated by digital innovation, understanding the crossroads of cybersecurity and indemnity insurance is more critical than ever for IT professionals. As cyber threats evolve with increasing sophistication, the concept of cyber liability has come into sharp focus, pinpointing the potential legal and financial risks associated with data breaches and cyber-attacks that professionals in the information technology sector may face. - read more
The landscape of work is changing in Australia, with more individuals embracing the flexibility and autonomy that freelancing offers. A significant surge in the freelance economy is a testament to this shift, as a myriad of professionals, from writers and designers to IT consultants, choose to offer their services independently. The burgeoning freelance community contributes not only to innovation but also to the country's economic vibrancy. - read more
Professional Indemnity Insurance (PII) remains one of the keystones of risk management for professionals across Australia. Yet, misconceptions and lack of awareness can lead to inadequate coverage, leaving individuals and businesses vulnerable in a litigious environment. - read more
Insurers Face Intense Scrutiny Over Quake Claim Rejections
Insurers Face Intense Scrutiny Over Quake Claim Rejections
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In recent months, Muswellbrook, a town in New South Wales, has experienced a series of earthquakes that have left residents grappling with both physical destruction and emotional distress.
Criticism is mounting against insurers as more than 600 claims have emerged, following these seismic events, yet many remain unresolved or denied.
Muswellbrook Shire Council conducted a survey among residents after the quakes, identifying extensive structural damages and a community riddled with anxiety. The survey, reflecting feedback from about 200 participants, showcased a troubling pattern: more than 50% of claims have been turned down by insurers.
Contrary to local concerns, the Insurance Council of Australia (ICA) maintains that insurers are diligently processing claims. The ICA anticipates that most unresolved claims will eventually receive full or partial settlements. An ICA spokesperson clarified in a statement to insuranceNEWS.com.au, “When assessing a claim relating to an earthquake, insurers engage expert engineers to assess potential damage.”
Such diligence, however, has done little to placate local leaders like Mayor Jeff Drayton, who remarked, “The response from insurance companies has been a joke. They have taken so long to assess the claims, only to reject them, leaving people in limbo and wondering what’s the point of insurance.”
This issue isn't isolated, echoing precedents such as the significant Victorian earthquakes in 2021. These earlier events also saw numerous claims lodged, with many resulting in rulings favorable to the insurers from the Australian Financial Complaints Authority.
Typically, homeowners might discover minor, pre-existing damages only after scrutinizing their homes post-quake. Insurance often does not cover such pre-existing conditions, contributing to a rise in rejected claims. As noted by industry reports, while earthquake damage tends to be included in home policies, ambiguous cases caused by routine earth movement or thermal expansion present challenges.
The ICA emphasizes the capacity of expert engineers to “easily distinguish” genuine earthquake damage from other types of defects. Yet, those dissatisfied with insurance outcomes have multiple recourses. Customers may initiate internal disputes, and if unresolved, escalate them to the Australian Financial Complaints Authority.
An underlying concern, though unproven, attributes these seismic events to nearby coal mining operations, raising questions about insurance policies' concordance with evolving geological realities.
With residents increasingly aware and anxious, the ball is in the insurers' court to restore trust. How swiftly and equitably these claims are resolved might well define insurance responses to future, inevitable natural calamities.
Published:Thursday, 21st Nov 2024 Source: Paige Estritori
In recent months, Muswellbrook, a town in New South Wales, has experienced a series of earthquakes that have left residents grappling with both physical destruction and emotional distress. Criticism is mounting against insurers as more than 600 claims have emerged, following these seismic events, yet many remain unresolved or denied. - read more
The Insurance Council of Australia (ICA) has raised concerns about the potential fallout from a fragmented regulatory approach to artificial intelligence and automated decision-making in the industry. There is fear that this patchwork of reforms could result in conflicting requirements, heavier compliance burdens, and increased industry confusion. - read more
A recent analysis by the Australian Prudential Regulation Authority (APRA) reveals that over 90% of general insurers and reinsurers anticipate climate change will influence their underwriting procedures, posing new challenges to the industry. - read more
In a remarkable case highlighting the severe consequences of insurance fraud, an individual's attempt to inflate a theft insurance claim has resulted in the total denial of compensation. Despite a significant portion of the claim being genuine, fraudulent actions negated any potential payout. - read more
As climate change persists, the impact of severe weather on insurance premiums is becoming more evident, pushing affordability out of reach for many Australians. Bernadette Systa, a mother of five, faced an undeniable financial strain as her annual home and contents insurance costs surged from a modest amount to more than twice what she initially paid. This experience echoes a growing dilemma faced by households across the country. - read more
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