The Insurance Council of Australia (ICA) has welcomed the mitigation measures proposed by the Queensland Floods Commission of Inquiry and called on governments to “get moving” on flood mapping.
The inquiry recommends the Queensland Government act before the next wet season to ensure a statewide natural hazard risk assessment is completed and its results provided to local governments.
Many of the inquiry’s recommendations relating to disaster planning and emergency management concern how information can be disseminated to communities so they can prepare for disaster.
ICA CEO Rob Whelan says the 2011 floods have served as a wake-up call to governments and the insurance industry.
“A repeat of the 2011 flooding that damages the same communities will be a failure of mitigation, not a failure of insurance,” he said.
Mr Whelan says the latest flooding in Queensland, Victoria and NSW has shown that communities protected by mitigation have suffered substantially less damage and disruption than those left vulnerable to extreme weather.
He welcomed the inquiry’s recommendations on the need for substantial improvements in the collation of flood mapping and data, saying this could work nationally, with all data centralised with Geosciences Australia.
“Insurers are also pleased that the commission noted the extreme pressures the industry was under in January last year and that it had performed well under the circumstances,” he said.
Insurers paid out $1.69 billion and $690 million in reserve payments is being made.
Mr Whelan says the Financial Ombudsman Service (FOS) handled 1000 disputes relating to insurance claims from the Queensland floods, with about half being found in favour of consumers.
Many disputes were about the size of settlements, not denial of the claim.
He says ICA has brought forward the triennial independent review of the General Insurance Code of Practice Code by 12 months to this July and expects to appoint a reviewer in coming weeks.