News

Wilder weather the new norm

News >> News on Insurance

In a report from insurancenews.com.au, Insurance Australia Group CEO Mike Wilkins said Insurers must offer targeted and affordable cover to help prepare consumers for increasing and intense bouts of wild weather.

Modelling from IAG’s natural perils team indicates that in the next 40 years there is likely to be a 15% increase in the number of the most destructive category 4 and 5 tropical cyclones and an increased frequency of cyclones tracking south into northern NSW.

Mr Wilkins also expects the number of serious hailstorms – with stones up to 10cm – to double over that period.

“A changing climate will present challenges at all levels of society, and the insurance industry must be right at the centre of the response,” he said.

“In the past 12 months IAG’s businesses have handled more than 150,000 additional claims, over and above our normal ‘business as usual’ claims activity.”

Mr Wilkins says he supports the Productivity Commission’s inquiry into the barriers affecting climate change adaptation and says the terms of reference “clearly acknowledge the role insurance can play”.

He has also backed the Federal Government’s moves to streamline flood definitions in insurance policies and provide clearer information for consumers.

“While there were reasons for many insurers being unable to offer flood cover in Queensland, the fact remains [that] a lot of people who thought they had cover did not,” Mr Wilkins said.

However, the increasing risk of natural disasters and better targeted coverage would likely result in more expensive premiums and there was a significant risk that people would opt out altogether.

“The affordability of insurance is an important social issue. Private insurance policies aren’t just a safety net for businesses and individuals; they are a safety net for the taxpayer,” he said.

“So when someone drops out of the safety net or is underinsured, there is a potential economic impact for the rest of us.”

He says the elimination of state-imposed insurance taxes would help lower the cost of premiums.

“There is broad agreement that these taxes are among the most inefficient and distorting taxes in our system.”

He says state taxes add an extra $4.25 billion each year to the total cost of insurance policies, he said. 

2011 - the annus horriblus of natural catastrophes

Last changed: Mar 12 2012 at 1:02 PM

Comments

  1. None Found

Add Comment

Latest News

Three Years running - Insurance Brokerage of the Year 1 to 5 staff

Mandy and Robert Cooper were extremely honoured and astounded to once again win, Insurance Brokerage of the Year for 2020 from Insurance Business Australia magazine. This is the third year running.

While this year has not been the easiest of years for the business with Covid 19, the Recession, the hard market and issues at Lloyds of London, we are literally all in this together as an Insurance Industry.

CPR Insurance Services continues to make our clients the number one focus of our business while managing our relationships with Insurers, who we need more than ever in this market climate.

CPR Insurance Services are a highly ethical Brokerage with a reputation as a trusted advisor who always acts in the Client's best interests. Their experience, knowledge and expertise is amongst the highest in the industry.

CPR Insurance Services is now ten years old as a business and is proud of being an Authorised Representative of Ausure and their partnership with Steadfast, giving CPR the strength and backing to match it with any Broking firm in the Insurance Industry, but remain focussed on supporting the Small to Medium business segment.

Memberships of the National Insurance Brokers Association, Australia and New Zealand Institute of Insurance and Finance, Australian Insurance Law Association, Australian Professional Indemnity Group and the Australian Institute of Company Directors, ensures CPR Insurance Services maintains the high standard of knowledge and expertise required to be one of the best Brokerages in Australia.

CPR Insurance Services also plays a strong role in their local community supporting other Sporting Clubs and Community organisations. They also support and promote local businesses with their operation of the Kedron Brook Business Group who meet regularly and has 174 members.

We are truly honoured to receive this National award once again for the third year as a recognition of CPR Insurance Services contribution.

read more

Finalist for QLD Broker of the Year

Robert Cooper was honoured to be nominated as a finalist for Queensland Insurance Broker of the year for 2020, as part of the National Insurance Brokers Association. Unfortunately he missed out on the ultimate award but is a reflection of the high standard that the industry now has for such awards.

read more