Almost $6 million has been clawed again from insurance coverage firms after policyholders affected by the Victorian and NSW flood disasters complained about their therapy.
Information from the Australian Monetary Complaints Authority (AFCA) confirmed there have been 1,064 flood-related complaints recorded in Victoria and New South Wales as of December 31.
The most typical have been about dwelling constructing insurance coverage (74 per cent), dwelling contents insurance coverage (9 per cent), landlords’ insurance coverage (6 per cent), complete motorcar insurance coverage (5 per cent), and private transaction accounts (2 per cent).
Total, profitable complaints resulted in compensation and refunds of $5.9 million to policyholders.
AFCA lead ombudsman for insurance coverage, Emma Curtis, mentioned flooding had precipitated a major and ongoing impact throughout Australia.
“We acknowledge that the size of pure disasters round Australia mixed with shortages of labour and supplies have meant delays in insurers assessing claims and in restore work being accomplished,” Ms Curtis mentioned.
“AFCA stays involved in regards to the variety of disputes being escalated to us.”
An AFCA spokesperson mentioned insurers ought to have the ability to a minimum of clarify the premise for his or her elevated premiums.
Ms Curtis mentioned the authority anticipated insurers to do all they may to evaluate claims promptly, inform prospects about anticipated time frames, and clearly talk about claims choices.
“To assist us handle the excessive numbers of complaints we’re receiving, right here at AFCA now we have elevated the scale of our group and we’re often updating individuals on the progress of their criticism,” she mentioned.
“In case your criticism is pressing, it’s important so that you can tell us to assist us prioritise these circumstances.”
Wholesome competitors important
Victorian Nationals chief Peter Walsh mentioned there had been a considerable price enhance to the insurance coverage coverage premiums renewed in flood-threatened postcodes since the 2022-23 Victorian and New South Wales flood disaster.
Mr Walsh mentioned some insurance coverage firms have been taking a look at reducing protection to specific elements of Australia.
“We had this debate with the insurance coverage business put up the 2011 floods they usually noticed cause and stayed in these areas providing insurance coverage,” he mentioned.
“We’ll be having that argument once more to make it possible for there’s competitors to maintain the costs affordable in these areas which have had floods.”
Mr Walsh mentioned competitors helped to maintain “all of the insurance coverage firms trustworthy”.
“We’d like many insurance coverage firms and underwriting companies in these areas to maintain the costs reasonably priced,” he mentioned.
In an announcement to the ABC, a Victorian authorities spokesperson mentioned the federal government was involved about studies of Victorians who couldn’t entry reasonably priced insurance coverage.
“We’re working with the Commonwealth authorities and the Insurance coverage Council of Australia to discover methods to make insurance coverage extra reasonably priced and accessible to Victorians,” it mentioned.