Call for Insurance Sector to Champion Resilience Funding
Call for Insurance Sector to Champion Resilience Funding
3
The information on this website is general in nature and does not take into account your objectives, financial situation, or needs. Consider seeking personal advice from a licensed adviser before acting on any information.
Insurance companies should explore innovative solutions to tackle the rising challenges of affordability and accessibility in the sector, recommends a major consumer group, Australian Consumers Insurance Advocacy.
This call emerges amidst the industry's general dependence on governmental intervention to spearhead efforts in resilience and mitigation, despite strong endorsements from insurers themselves. "It's crucial for insurers to take the initiative in this domain," stated the advocacy group.
The Advocacy’s recent submission to a Senate inquiry proposes that the Insurance Council of Australia could encourage its members to allocate around 1% of home insurance premiums into a dedicated resilience fund, potentially amassing a $100 million pool annually for private mitigation undertakings.
This proposed fund could extend interest-free loans to policyholders grappling with insurance hardships due to property defects or significant maintenance issues. Additionally, the group floated the notion of forming a specialized underwriting agency for individuals who find it financially strapped or hard to secure coverage, backed partly by profits or premiums from certain insurance categories to bolster the initiative.
"Although these measures might result in some immediate costs for insurers, likely transferred to consumers, the far-reaching repercussions of inaction far outweigh them," the submission points out.
Within the evaluation by the Senate select committee observing how climatic factors influence insurance premiums and availability, the Australian Consumers Insurance Advocacy underscores that property owners shouldn't be held entirely financially accountable for mitigation strategies. They endorse a system wherein the government matches a specified amount for each dollar investment in mitigation by property owners.
The Insurance Council’s own Senate submission highlighted the sector's collaborative efforts with governmental bodies and regulatory authorities, through avenues such as the Hazards Insurance Partnership, to address protection gaps. "One major achievement of HIP has been the sharing of information between government and industry to better comprehend issues related to affordability, under-insurance, and non-insurance, thus guiding policy and initiatives," it mentions.
The industry is actively engaging with the Australian Prudential Regulation Authority to refine its Climate Vulnerability Assessment framework for the sector and is advocating for augmented investments in preventive infrastructure like flood defenses and revising building codes and land use planning strategies.
Reflecting on previous advancements, including the federal government's $1 billion Disaster Ready Fund and state-funded resilience programs, the Insurance Council stresses that additional initiatives are necessary. "Despite these beneficial announcements, further steps are imperative," reads the council's submission.
The information is adapted from a source article originally published by the Australian Consumers Insurance Lobby.
In a strategic move to make life insurance more relevant to younger Australians, TAL has expanded its Health Sense Plus program to encompass income protection policies. This initiative allows advisers to offer clients enhanced value through a straightforward preventative health engagement. - read more
The Australian Financial Complaints Authority (AFCA) recently ruled that a home-based waxing salon constitutes a business, not merely a hobby. This decision has significant implications for beauticians managing home-based operations, particularly concerning insurance disclosures and compliance. - read more
The Insurance Council of Australia (ICA) has recently called for comprehensive reforms to state and territory civil liability laws, citing significant increases in public liability insurance premiums. This development is particularly relevant for beauticians and small business owners in the beauty industry, who are experiencing escalating insurance costs. - read more
The cosmetic injectables industry in Australia has experienced significant growth, with the market valued at $4.1 billion in 2023 and projected to grow by 19.3% annually until 2030. This surge reflects increasing consumer demand for non-surgical cosmetic procedures, including anti-wrinkle injections and dermal fillers. - read more
Recent findings from the Housing Industry Association (HIA) reveal that a significant majority of small and medium-sized builders in Australia are grappling with the escalating costs of insurance premiums. In a comprehensive survey, 72% of respondents identified rising insurance expenses as the primary pressure point affecting their businesses. This concern surpasses other operational challenges such as planning approvals, skilled labour shortages, and compliance with building codes. - read more
Rural Affinity has renewed its partnership with Munich Re Specialty - Global Markets under a new five-year agreement, continuing a collaboration that began in 2006. This renewed alliance aims to support Rural Affinity's efforts to expand its agricultural insurance offerings across Australia and introduce new products leveraging technology and innovation. - read more
The Australian Financial Complaints Authority (AFCA) has recently ruled in favour of a truck owner whose insurance claim was initially denied following an engine overheating incident. This decision underscores the complexities surrounding insurance claims related to driver negligence and mechanical failures. - read more
The Australian Financial Complaints Authority (AFCA) has recently upheld an insurer's decision to deny a truck theft claim, citing misrepresentation of the insured's insurance history. This ruling highlights the critical importance of accurate disclosure when obtaining insurance coverage. - read more
The Australian Financial Complaints Authority (AFCA) has recently ruled in favour of a freight company in a dispute over the disclosure of transporting dangerous goods. This decision provides valuable insights into the obligations of transport companies regarding insurance disclosures. - read more
Recent findings from PwC's Insurance Banana Skins Survey highlight a concerning trend: Australian insurers are trailing their global counterparts in risk preparedness. The survey, which gathered insights from 698 insurance executives across 42 territories, indicates that Australian insurers scored 6.6% lower on the Preparedness Index compared to the global average. - read more
Welcome to the world of farming, where the fruits of your labor are as tangible as the soil you till. But just as the land is subject to the whims of nature, so too is the business of agriculture. This is where farm insurance becomes essential. Farmers face a set of challenges and uncertainties unlike any other industry, primarily due to the unpredictable forces of weather. - read more
Crop insurance is a type of insurance policy designed to protect farmers from the financial losses that arise from damages to their crops. This could be due to various risks, including adverse weather conditions, pests, and diseases. - read more
As the backbone of Australian agriculture, farm equipment plays an essential role in day-to-day operations across our expansive and diverse landscapes. From the vast wheat belts to the tropical fruit farms, machinery ensures efficiency and productivity in the face of constant challenges. But with reliance on such equipment comes significant risk—the financial burden of damage or loss can be devastating to a farmer's livelihood. - read more
Welcome to our comprehensive guide on navigating the complexities of farm insurance for Australian farmers. As an integral part of the agricultural industry, insurance provides a safety net that helps secure the livelihood of farmers against unpredictable events that can lead to financial hardship. From property damage due to natural disasters to loss of livestock or crops, having adequate farm insurance can make all the difference in keeping a farming operation afloat in times of crisis. - read more
Australian farmers face a unique set of challenges due to the vast and varied climate conditions that sweep across the continent. From the scorching heat and prolonged droughts of the Outback to the tropical storms and torrential rains of the northern regions, weather-related risks are an integral part of agricultural life in Australia. - read more
Farming in Australia is not just a job, it's a way of life. However, it’s also a livelihood that comes with its own unique set of risks. From unexpected weather events to machinery breakdowns, the life of an Australian farmer is fraught with uncertainties. - read more
Farming is much more than an occupation; it's a way of life and a heritage that often spans generations. In today's ever-evolving agricultural landscape, embracing modern practices while preserving your farm's future has never been more crucial. Estate planning emerges as a pivotal strategy for safeguarding your agricultural legacy, ensuring that your hard-earned investments and the land you hold dear are passed on according to your wishes. - read more
For Australian farmers, livestock is more than just a vital asset; it's the heartbeat of their livelihood. In a land where the sunburnt plains are as relentless as they are beautiful, protecting your herd isn't just a duty; it's a necessity. That's where livestock insurance comes into play—a shield against the unpredictability of Mother Nature. - read more
Farming in Australia is more than just a way of life; it is a critical sector that supports the nation’s economy and food supply. However, managing a farm comes with its own set of unique risks. From natural disasters to equipment failures, farmers face numerous challenges that can impact their livelihood. - read more
Agroforestry is a transformative approach to land management that integrates trees into agricultural landscapes. In Australia, where farmers contend with variable climates and environmental challenges, agroforestry offers a resilient pathway to productivity and sustainability. - read more
Need a Quote?
Start your free farm insurance quote comparison here.
Knowledgebase
Insurance: In law and economics, insurance is a form of risk management primarily used to hedge against the risk of potential financial loss.