In April, the Insurance Council of Australia (ICA) commissioned an independent review of the insurance industry’s response to the 2022 floods that impacted South-East Queensland and Northern New South Wales.
The floods resulted in 240,000 claims, totalling $5.81 billion, making it Australia’s costliest weather event yet. Whatsmore, according to a report by global reinsurer MunichRe, it was the second costliest insured event in the world that year.
With more than 83% of claims now closed, insurers agree it is timely to have a review.
The Independent Review into the 2022 floods
The ICA has appointed leading consultancy and accounting firm Deloitte to carry out the review.
The purpose of the review is to examine the lessons learned from the insurers’ response to the floods. Importantly, it aims to identify best practice to help insurers better prepare and respond to future extreme weather events.
The review will look at insurers’:
- Response timeframes
- Resources deployed
- Claims handling
- Complaints handling
- Communication with policy holders
- Engagement with stakeholders
Additionally, the review will examine the:
- Impact of regulatory requirements
- Insurer’s interactions with government agencies
- Broader external pressures such as supply chain and labour constraints
Deloitte will use insurers’ claims and complaints data and include a consultation process to gather the views of a broad range of stakeholders, including representative groups of affected policy holders.
The final report and its recommendations are expected later this year.
If you would like advice on flood insurance and how best to manage business risk for extreme weather events talk to a Clear Insurance adviser today.
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