Insurers Under Scrutiny for Response to Alfred Flood Claims

1

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:

Insurance News

Clear

Red Sea Unrest: Insurer Denies Cruise Cancellation Claim 20 Jun 2025: Paige Estritori An Australian travel policyholder has been denied a claim payout after his planned cruise in the Red Sea was cancelled due to conflict. The insurer, Southern Cross, invoked its policy's war and violence exclusion clause, as disturbances in the region were linked to military activities, rendering the claim invalid. - read more

Recognition at ACT Insurance Awards Highlights Industry Leaders 18 Jun 2025: Paige Estritori The ACT Insurance Awards have recently acknowledged the standout performers within the insurance sector, with EML Group's Canberra branch receiving the prestigious title of Insurance Leader of the Year. This accolade sets a benchmark in the industry, emphasising excellence and leadership among its professionals. - read more

TAL Collaborates with Insurtech to Launch Embedded Life Insurance 17 Jun 2025: Paige Estritori Australia's prominent life insurer, TAL, has partnered with the global insurtech firm, Cover Genius, to introduce an innovative 'digital-only', embedded life insurance product. This new solution aims to serve Australian workers such as part-time employees, contractors, and casual staff who often lack access to affordable insurance coverage. - read more

Growing Mistrust in New Zealand Insurers Amid Rising Costs 17 Jun 2025: Paige Estritori Recent findings from a Consumer NZ survey highlight increasing skepticism towards insurers in New Zealand, as affordability remains a significant concern for many. The survey noted that insurance now ranks as the fourth-largest financial pressure among respondents, trailing housing, food, and household debt, marking an upward shift from sixth place last October. This change has negatively impacted the industry's reputation, with more individuals expressing distrust towards insurers. - read more

No Refund Policy Upheld in Camper Tent Dispute 16 Jun 2025: Paige Estritori The Australian Financial Complaints Authority (AFCA) has supported Open Insurance's decision to deny a refund to a customer who cancelled his motor policy after being informed that his new rooftop tent installation would breach policy guidelines. The policyholder was advised that any modifications, including a 'slip on camper/tent or camper conversion,' would void coverage, prompting him to cancel his insurance in March. - read more