Insurance Council of Australia Supports National Disaster Insurance Review

March 7, 2011

In a recent bulletin the Insurance Council of Australia (ICA) said it “has welcomed the National Disaster Insurance Review announced by the Federal Government.”

ICA CEO Rob Whelan said the National Disaster Insurance Review has the full support of the general insurance industry. “We believe this review provides a great opportunity for the general insurance industry to contribute to current debate on how Australian communities can be more resilient to extreme weather events,” he stated. “Disaster insurance is critical when it comes to protecting Australian communities, but there are other important measures that also need to be taken to better mitigate against events such as the recent Queensland flood.”

Whelan also pointed out that the ICA and its member companies have “spent many years making representations to all levels of government in a bid to reduce the damage caused by serious disasters and to help communities recover more quickly from these devastating events. “To do this we need to implement a range of measures which the industry has outlined in its 10 Point Plan.”

He added that even while “working towards a standard definition for flood and improved disclosure to enhance consumer understanding of insurance cover are important initiatives, there is still a lot of other work to do in the area of flood mitigation and mapping. For example, the ICA supports proper flood mapping which would allow the industry to underwrite a wider range of insurance products to supplement those already available.

“Other measures of importance include improved building standards, better land-use planning as well as the introduction of preventative infrastructure projects such as levees, barrages, flood gates and improved drainage.”

Source: Insurance Council of Australia

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