Victorian Flood Inquiry Calls for Faster Insurance Responses

1

A thorough review by the Legislative Council Environment and Planning Committee highlights that prompt and adequate insurance assistance is pivotal for the recoveries of individuals and communities. Their interim findings, due for a final expansion in July, point out the further dislocation caused by slow insurance processes, limited contractor availability, and material access difficulties post-disaster.

The committee, evaluating testimonies and submissions from extensive public sessions in northern Victoria and Maribyrnong, emphasizes the importance of swift insurance action to mitigate prolonged trauma effects and stresses the importance of support services provided in a timely manner.

The negative impact of sluggish claim handling and poor coverage was pronounced in the family-faced hardships documented in the report. Obstacles like these slow rebuilding and amplify the already harsh conditions for disaster-stricken residents.

Policyholder narratives included in the interim report display the extent of the strain, such as:

• the intensity of dealing with financial and emotional stress while residing in temporary homes.
• the growing despair as residents remain displaced long after the floods, feeling deserted by insurers and government alike.
• frustration with an insurance industry quick to collect premiums but slow in meeting claims, especially when determining reparability.
• the disorder within companies, leading to inefficient repair processes and bloated costs from drawn-out paperwork.
• a personal account of parents’ untenable living situation amidst arduous dealings with insurers.
• Insistence on the necessity for a defined timeframe for insurance response to hold companies accountable and facilitate disaster recovery.

The widespread community sentiment reflected an orderly call for more efficient insurance procedures to address the severe effects of disasters, with policymakers looking to refine recovery mechanisms amidst Victoria's battle with natural calamities.

Published:Tuesday, 30th Apr 2024
Source: Paige Estritori

Share this news item:

Insurance News

Adviser Shortage and Policy Shifts Impact Life/Risk Market 17 May 2024: Paige Estritori The decline of life/risk advisers paired with the Australian Prudential Regulation Authority's (APRA's) intervention in the Individual Disability Income (IDII) insurance sector imposes fresh challenges on the market, hinting at recovery only intermittently. - read more

Insurers Under Fire: Melbourne Floods Reveal Gaps and Mismatches 16 May 2024: Paige Estritori Residents from western Melbourne have voiced sharp disapproval of insurance companies at the recent federal inquiry hearings held in Maribyrnong, citing significant grievances post the 2022 floods. - read more

Allianz Streamlines Flood Insurance with New Update 16 May 2024: Paige Estritori Allianz has taken a considerable step forward in modifying its flood insurance approach for homeowners. Drawing conclusions from the flood incidents of 2022, changes are set to be implemented to provide clearer and more inclusive coverage. As a measure to simplify their insurance products, Allianz will integrate flood insurance as a non-negotiable component of home building, contents, and landlord policies for new clients starting from the latter part of this year. - read more

Australian Tourist Secures Compensation for Air Ambulance From Bangkok 11 May 2024: Paige Estritori A recent decision by a dispute resolution body in favor of a 74-year-old Australian traveler has emphasized the importance of clear communication and precise terms and conditions in insurance policies. This comes after the individual engaged in a tug-of-war with an insurance company over a $195,223 claim to cover emergency medical transportation from Thailand. - read more

Marine Insurance Leader Club Marine Welcomes New CEO 07 May 2024: Paige Estritori In a notable shift in its leadership ranks, Club Marine, a key player in the marine insurance market and subsidiary of Allianz, has officially instated Tim Wiles as its Chief Executive Officer. Wiles, having confidently steered the company since last November as interim CEO, has now been entrusted with the permanent leadership mantle. - read more