Inquiries Search
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For a full list of all inquiries, see the All Inquiries page. For a tabular list of recommendations, go to the All Recommendations.
Rec-ID | Code | Recommendation |
---|---|---|
REC339-4403 | 32 - Doctrine, standards, and reform | The Committee recommends the Australian Government define the following terms in the Insurance Contracts Act 1984: |
REC339-4404 | 32 - Doctrine, standards, and reform | The Committee recommends that: |
REC339-4405 | 32 - Doctrine, standards, and reform | The Committee recommends that a distinction be made in the General Insurance Code of Practice (the Code) between aspects of properties where maintenance is: |
REC339-4406 | 32 - Doctrine, standards, and reform | The Committee recommends that the Australian Government consider amending Sections 46 and 54 of the Insurance Contracts Act 1984 so as to better give effect to the original intent of the provisions. This could reduce unintended, arbitrary divergences in claims outcomes based on wear and tear and maintenance exclusions at odds with reasonable consumer understanding of their coverage. |
REC339-4407 | 32 - Doctrine, standards, and reform | The Committee recommends that Engineers Australia in conjunction with the Insurance Council of Australia develop guidelines for hydrologists that are providing insurers with hydrology reports relating to flood and storm claims, with a view to providing a more robust evidence base for insurers to rely on to make claim decisions. These guidelines should be shared with state and territory governments and appropriate authorities such as planning agencies and resilience authorities. This could include the following matters: |
REC339-4408 | 32 - Doctrine, standards, and reform | The Committee recommends that the Australian Securities and Investments Commission produce regulatory guidance clarifying that insurers cannot rely solely on hydrology and expert reports to deny a claim where the report has not properly linked the damage observed with the cause of the damage, consistent with Recommendations 75 - 78 of the Independent Review of the General Insurance Code of Practice (the Code).That the Code provisions in relation to the appointment of experts be strengthened to ensure that: |
REC339-4409 | 6 - Insurance and legal liability | The Committee recommends the Australian Government establish a mechanism for creating and funding an independent expert panel of hydrologists to undertake hydrology reports if the policyholder disputes the findings of the first report. |
REC339-4410 | 32 - Doctrine, standards, and reform | The Committee recommends that the General Insurance Code of Practice be amended to require that insurers implement mechanisms to: |
REC339-4411 | 6 - Insurance and legal liability | The Committee recommends the Insurance Council of Australia in consultation with the Australian Securities and Investments Commission provide guidance to insurers about providing greater detail and clarity to policyholders on their rights and risks when an offer is made for a final cash settlement, including the risks policyholders should be aware of for the project management of repairs. This would align with elements of recommendation 71 of the Independent Review of the General Insurance Code of Practice’s Initial Report, and the Committee recommends that this recommendation be implemented in full. |
REC339-4412 | 37 - Funding | The Committee recommends that the General Insurance Code of Practice provide that final cash settlements: |
REC339-4413 | 32 - Doctrine, standards, and reform | The Committee recommends that the General Insurance Code of Practice be amended to include a minimum 30 day ‘cooling off period’ with respect to cash settlements. |
REC339-4414 | 32 - Doctrine, standards, and reform | The Committee recommends that the General Insurance Code of Practice be amended to require insurers, when offering a final cash settlement, to: |
REC339-4415 | 32 - Doctrine, standards, and reform | The Committee recommends that the General Insurance Code of Practice be amended to require insurers when offering final cash settlements to include areasonable uplift/contingency sum to reasonably compensate policyholders for the risks they take on in project managing the repairs to their property. |
REC339-4416 | 32 - Doctrine, standards, and reform | The Committee recommends the General Insurance Code of Practice be amended to allow policyholders to have a 12-month period to seek a review of a final cash settlement where there is a change in the facts upon which the original determination was made. |
REC339-4417 | 32 - Doctrine, standards, and reform | The Committee recommends that the General Insurance Code of Practice prohibit the use of the terms “without prejudice” or “confidential” (or other misleading terms) on final cash settlement offers. This could be supplemented by regulatory guidance by the Australian Securities and Investments Commission. |
REC339-4418 | 33 - Relief and recovery | The Committee recommends that a new service be offered to support vulnerable cash settlement recipients to project manage rebuilds and major repairs. This could be similar to the Service Navigator role in Queensland’s Resilient Homes Fund. |
REC339-4419 | 35 - Business and Industry in relation to industry | The Committee recommends that the Insurance Council of Australia in consultation with the Australian Securities and Investments Commission: |
REC339-4420 | 35 - Business and Industry in relation to industry | The Committee recommends that there should be insurer and regulator oversight of Scopes of Work through the following mechanisms: |
REC339-4421 | 28 - Personal responsibility | The Committee recommends that insurers amend their home insurance policies to provide fully paid temporary accommodation until the insurer has closed the claim, unless the extension of the time required can be demonstrated to be a result of behaviour on the part of the policyholder that is unreasonably causing delay; That final cash settlements include a provision for temporary accommodation that takes account of the Scope of Works; progress on the project to date; and a reasonable uplift; and That the cost of covering temporary accommodation should be a separate entitlement and not be funded out of the sum insured amount. |
REC339-4422 | 32 - Doctrine, standards, and reform | The Committee recommends the Insurance Council of Australia amend the General Insurance Code of Practice to include an appropriate mechanism for ensuring policyholders that are being provided with temporary accommodation as part of their claim have at least 3 months’ notice of any proposed substantive changes to the policyholders’ living situation or the insurers’ payments for the accommodation. |
REC339-4423 | 6 - Insurance and legal liability | The Committee recommends that the Insurance Council of Australia in conjunction with the Australian Securities and Investments Commission develop guidelines on how insurers can apply tighter internal controls on the oversight of building contractors, including guidelines on community expectations for industry to improve their oversight practices. |
REC339-4424 | 21 - Role of Commonwealth Government | The Committee recommends the Australian Government consider appropriate regulatory or other mechanisms to reduce the instances of third-party builders and other contractors making changes to properties without the policyholder’s consent, including the practice of gaining entry, removing property (strip-outs) or conducting repairs without the policyholder’s knowledge or consent. Solutions should take into account the unique circumstances and challenges created by catastrophic flood events. |
REC339-4425 | 21 - Role of Commonwealth Government | The Committee recommends that the Australian Government investigate mechanisms to require insurers to more clearly communicate the basis for the price of premiums. This could include: |
REC339-4426 | 32 - Doctrine, standards, and reform | The Committee recommends that the General Insurance Code of Practice be amended to require that insurers, at policy commencement and renewal, communicate key information on the consumer’s policy, including: |
REC339-4427 | 32 - Doctrine, standards, and reform | The Committee recommends that the General Insurance Code of Practice be amended to require that insurers inform policyholders when they suspect the policyholder’s sum insured does not cover the full rebuild costs according to their calculations, both at sign-on and renewal. The insurer should encourage the consumer to review their sum insured amount and ask them to confirm with a response. |
REC339-4428 | 32 - Doctrine, standards, and reform | The Committee recommends that the General Insurance Code of Practice be amended to require that insurers adopt a more flexible approach in relation to rebuilds and that, in particular, a like-for-like replacement not be required and that consumers be permitted to swap out size/scope for resilience and efficiency in “sum insured” repairs and rebuilds. |
REC339-4429 | 6 - Insurance and legal liability | The Committee recommends that insurance brokers and insurers be required to provide clear guidance on the operation of averaging provisions to small and medium sized businesses. |
REC339-4430 | 33 - Relief and recovery | The Committee recommends that all large insurers commit to having a physical presence at major emergency hubs in affected communities as soon as possible following a natural disaster. |
REC339-4431 | 33 - Relief and recovery | The Committee recommends the Insurance Council of Australia in consultation with the Australian Securities and Investments Commission and state, territory and local governments: |
REC339-4432 | 32 - Doctrine, standards, and reform | The Committee recommends that the General Insurance Code of Practice be amended to require that insurers, in the immediate aftermath of a natural disaster, provide policyholders with updated information about: |
REC339-4433 | 32 - Doctrine, standards, and reform | The Committee recommends the General Insurance Code of Practice be amended to require insurers to contact customers within 5 business days of the insurer becoming aware of a material change in the expected timing of any stage outlined in the guidance provided under Recommendation 30. |
REC339-4434 | 12 - EM agency and authority | The Committee recommends, in alignment with recommendation 3 of the 2023 Deloitte report, that insurers be required to build into their staff resourcing plans, strategies to adequately increase resourcing for key services, including call centre and claims management staff, when significant or catastrophic events occur. |
REC339-4435 | 32 - Doctrine, standards, and reform | The Committee recommends that the General Insurance Code of Practice be amended to require insurers to provide all policyholders with access to realtime information about their claim’s progress and key documentation on their claim. This could be through a mobile application or other platform. |
REC339-4436 | 32 - Doctrine, standards, and reform | The Committee recommends the General Insurance Code of Practice be amended to require that insurers use the ‘single point of contact’ claims management approach to the extent possible when responding to major natural disasters and ensure policyholders are informed of who their assigned case manager is as soon as practicable. The Committee further recommends that insurers be required to accommodate the preferred communication channel nominated by a policyholder during the claim processing period. |
REC339-4437 | 32 - Doctrine, standards, and reform | The Committee recommends that clauses 103c and 103d of the General Insurance Code of Practice be strengthened to ensure that key information is translated and available on insurers’ websites and that clause 103a should specify that this includes translating and interpreting services for Indigenous Australians. |
REC339-4438 | 17 - Assets and technology | The Committee recommends that insurers invest in their IT systems to improve the storage of policyholders’ key documentation and case notes, including correspondence and discussions. Case managers should also be suitably trained and resourced to implement quality record-keeping. |
REC339-4439 | 32 - Doctrine, standards, and reform | The Committee recommends that the Australian Securities and Investments Commission review how insurers are identifying vulnerable policyholders with a view to ensuring vulnerable policyholders are: |
REC339-4440 | 12 - EM agency and authority | The Committee recommends that insurers devote additional resources to providing vulnerable customers with assistance. Insurers should evaluate the effectiveness of this assistance after each declared event. |
REC339-4441 | 32 - Doctrine, standards, and reform | The Committee recommends that the General Insurance Code of Practice be amended to require insurers’ identification of vulnerable customers and training of staff be designed so that customer interaction is compliant with ISO 22458 2022-04, the International Organization for Standardization’s document Consumer vulnerability – Requirements and guidelines for the design and delivery of inclusive service. |
REC339-4442 | 29 - Operational Health and Safety | The Committee recommends that insurers improve staff training to ensure staff adopt a trauma-informed approach when communicating with policyholders. This should include: |
REC339-4443 | 32 - Doctrine, standards, and reform | The Committee recommends that the Australian Securities and Investment Commission update RG 271 Internal Dispute Resolution to provide further guidance on what constitutes a complaint and how complaints should be recorded. The goal should be to ensure that the definition of an internal dispute is set at a level that captures appropriately serious disputes and that this threshold is applied consistently across all insurers. |
REC339-4444 | 32 - Doctrine, standards, and reform | The Committee recommends that all insurers be required to establish a dedicated internal dispute resolution monitoring and review team to identify systemic issues arising through complaints and implement the Australian Financial Complaints Authority’s feedback to improve internal dispute resolution and claims handling processes |
REC339-4445 | 16 - Training and behaviour | The Committee recommends that insurers put in place strategies to ensure their internal dispute resolution teams will be appropriately resourced and trained to respond to future significant natural disasters, and able to critically analyse expert reports and investigate the circumstances of the claim. |
REC339-4446 | 32 - Doctrine, standards, and reform | The Committee recommends that insurers improve their processes to facilitate the escalation of cases that remain unresolved after 12 months to a more experienced case manager. |
REC339-4447 | 32 - Doctrine, standards, and reform | The Committee recommends that all insurers create a role for a ‘consumer advocate’ which has oversight of and, where appropriate, involvement in, the disputes managed within the firm, cases that have moved to the Australian Financial Complaints Authority (AFCA), and claims which have taken a long period of time to resolve. The consumer advocate should report to the Chief Executive Officer quarterly and the Board each year and provide a summary of the activities of the office over the preceding 12 months including a summary of cases where the consumer advocate was involved, the disputes that went to AFCA and the firm’s overturn ratio, and where long delays occurred before the case was resolved (longer than 12 months). |
REC339-4448 | 32 - Doctrine, standards, and reform | The Committee recommends that the Insurance Council of Australia seek to have the General Insurance Code of Practice approved by the Australian Securities and Investments Commission after implementing any recommendations of the Independent Review of the 2020 General Insurance Code of Practice. |
REC339-4449 | 32 - Doctrine, standards, and reform | The Committee recommends that the General Insurance Code of Practice be incorporated as a contractually enforceable clause in insurance Product Disclosure Statements (as is the Banking Code of Practice). |
REC339-4450 | 13 - Mapping and data quality | The Committee recommends that the General Insurance Code Governance Committee publish aggregate data on code breaches by clause, individual insurer, and brand. |
REC339-4451 | 2 - Emergency powers | The Committee recommends that the Australian Securities and Investments Commission (ASIC) appropriately use powers that it has as a result of the removal of the exemption of claims handling of insurance products under the Corporations Act 2001. The Committee notes that ASIC has only recently been granted such powers and they are as yet untested. |
REC339-4452 | 13 - Mapping and data quality | The Committee recommends that the Australian Securities and Investments Commission and the General Insurance Code Governance Committee share data so that it is possible to evaluate breaches of the General Insurance Code of Practice in the context of an insurers’ overall claims profile. |
REC339-4453 | 38 - Agency/Department Reporting | The Committee recommends that the Australian Securities and Investments Commission develop and define key outcomes measures for the consumer experience, including: |
REC339-4454 | 21 - Role of Commonwealth Government | The Committee recommends that legislation provide the Australian Securities and Investments Commission with sufficient data-gathering powers to obtain the information required to monitor and report on the metrics recommended in Recommendation 51. |
REC339-4455 | 13 - Mapping and data quality | The Committee recommends the Australian Securities and Investments Commission consider seeking data from insurers on their performance based on the metrics recommended in Recommendation 51: |
REC339-4456 | 38 - Agency/Department Reporting | The Committee recommends the Australian Securities and Investments Commission publish quarterly insurer and brand level data on their performance on the metrics recommended in Recommendation 51. |
REC339-4457 | 17 - Assets and technology | The Committee recommends that the Australian Securities and Investments Commission’s MoneySmart life insurance claims comparison tool be extended to general insurance. |
REC339-4458 | 38 - Agency/Department Reporting | The Committee recommends that for each declared event, insurers be required to report the number of unresolved cases after 12 months to the Australian Securities and Investments Commission and the overarching strategy for resolving these cases. This report should include the total number of outstanding claims and the most common reasons for the delay. |
REC339-4459 | 32 - Doctrine, standards, and reform | The Committee recommends that the General Insurance Code of Practice (the Code) be reformed to implement Recommendation 63 of the Independent Review of the 2020 General Insurance Code of Practice, that is: where the insurer has not made a decision on a claim within 12 months, and the delay is not due to the consumer or other reasons beyond the control of the insurer, the Code should require the claim to be accepted. The Committee further recommends that Australian Securities and Investments Commission consider using its powers in relation to claims management to enforce this obligation. |
REC339-4460 | 38 - Agency/Department Reporting | The Committee recommends that insurers report case management key performance indicators to the Australian Securities and Investments Commission. |
REC339-4461 | 32 - Doctrine, standards, and reform | The Committee recommends that insurers recognise standard third-party authorisation forms and that this obligation be reflected in staff training. |
REC339-4462 | 6 - Insurance and legal liability | The Committee recommends that, if a policy renewal falls due when there is long delay in claim handling or the completion of the project, the insurer should: |
REC339-4463 | 6 - Insurance and legal liability | The Committee recommends that insurers be required to ensure that people paying premiums monthly do not pay more. |
REC339-4464 | 13 - Mapping and data quality | The Committee recommends that the Australian Government work with state and territory governments to ensure flood maps are produced to a high standard across the nation, regardless of the size of the local government area producing the modelling. This may require: |
REC339-4465 | 13 - Mapping and data quality | The Committee recommends that the Australian Government ultimately move towards a national, centralised, public-facing portal containing flood risk data at the household level for: |
REC339-4466 | 26 - Research | The Committee recommends that the Australian Government commission research into effective ways of communicating flood risk to communities. The research may explore communities’ understanding of the Average Recurrence Interval, categories such as High, Medium or Low flood risk, and the Annual Exceedance Probability percentage. The research should be used to establish standard best-practice communication strategies for local governments and other stakeholders in communicating flood risk to communities. |
REC339-4467 | 13 - Mapping and data quality | The Committee recommends that the Australian Government continue to work with the insurance industry through the Hazards Insurance Partnership to collate: |
REC339-4468 | 37 - Funding | The Committee recommends that the Australian Government continue to work with the states and territories through National Cabinet to ensure that disaster and resilience funding, and non-financial support, are accessible and adequate for all councils, particularly smaller councils. The Committee recommends that the Government work with the states and territories through National Cabinet to ensure more disaster support can be triggered at the sub-Local Government Area level when needed. |
REC339-4469 | 37 - Funding | The Committee recommends a more flexible approach to post-flood grant arrangements, to expand eligibility to include some insured people, including: |
REC339-4470 | 24 - Govt responsibility | The Committee recommends that all levels of government should work together to ensure that, as far as is possible, people don’t need to resubmit the same information multiple times for different disaster support. Just as insurers should aim for one point of contact, government should aim for ‘tell your story once’. |
REC339-4471 | 37 - Funding | The Committee acknowledges the increased funding for the community legal sector recently announced. While the focus of this funding will be for family violence services, the Committee recommends that an appropriate proportion be dedicated to natural disaster services. |
REC339-4472 | 37 - Funding | The Committee recommends the Australian Government consider measures to improve the affordability of flood insurance for existing policyholders with high flood risk properties, including the appropriateness of a government supported reinsurance arrangement. Any interventions to improve the affordability of flood insurance should be pursued in accordance with to the following interdependent principles: |
REC339-4473 | 1 - Land-use and building regs | The Committee recommends that the Australian Government work with State, Territory and local government through National Cabinet to ensure that further development does not occur in areas of 1-in-100 flood risk or greater. The boundary for no future development should take account of climate modelling of future increases in risk, in addition to current estimates of risk. The Committee further recommends that the Australian Government explore mechanisms that it can adopt to give effect to this unilaterally, including: |
REC339-4474 | 1 - Land-use and building regs | The Committee recommends that the Australian Government work with state, territory and local governments through National Cabinet to ensure that publicly disclosed risk information at the individual property level is available through the property conveyancing process or mandated in state rental agreement regulation. |
REC339-4475 | 1 - Land-use and building regs | The Committee recommends that building codes and planning rules be strengthened and future-proofed to improve the resilience of communities and households, consistent with Recommendation 2 of the Actuaries Institute’s Funding for Flood Costs report. |
REC339-4476 | 37 - Funding | The Committee recommends the Australian Government continue to fund community level mitigation, ensuring at least $200 million per year ongoing. |
REC339-4477 | 37 - Funding | The Committee recommends that a climate financing framework be developed in relation to government mitigation and adaptation funding. That this framework create the appropriate incentives for both public sector and private sector investment in mitigation and more resilient buildings and infrastructure. This would include: |
REC339-4478 | 32 - Doctrine, standards, and reform | The Committee recommends the General Insurance Code of Practice be amended to require that insurers be required to consider relevant propertylevel mitigation measures in any new or renewing insurance policy, and to demonstrate how those measures have been reasonably reflected in the proposed premium. After the Code is registered with the Australian Securities and Investments Commission, the Committee also recommends that the Treasurer issue a ministerial direction for the appropriate regulator to periodically review insurers’ compliance with passing on premium reductions. |
REC339-4479 | 39 - Disaster Risk Management | The Committee recommends the Australian Government consider measures to reduce household level risks, including whether it would be appropriate to extend the Bushfire Resilience Rating Home Self-Assessment App to flood risks. |
REC339-4480 | 28 - Personal responsibility | The Committee recommends the Australian Government work with the Insurance Council of Australia to develop and publish advice on the mitigation measures households could undertake to improve the flood resilience of their property. |
REC339-4481 | 13 - Mapping and data quality | The Committee recommends the Australian Government and Insurance Council of Australia explore measures to facilitate the exchange of substantiated information about the resilience of a property to insurers, including new mitigation measures undertaken through state-based grant and loan programs. |
REC339-4482 | 9 - Community education | The Committee recommends insurers facilitate options for policyholders to provide additional information to insurers about the resilience of their property to flood risks, and make further investments to better integrate reported resilience measures into the calculations of premiums. |
REC339-4483 | 1 - Land-use and building regs | The Committee recommends that state and territory governments develop buyback and resilience programs for households with very high flood risk and where alternative mitigation measures are unlikely to manage the risk. The Australian Government should consider working with state and territory governments, including through co-funding models, where appropriate. |
REC339-4484 | 1 - Land-use and building regs | The Committee recommends the Australian Government work with state and territory governments to review the operation of existing buy-back schemes to ensure they are targeted appropriately and to evaluate the outcomes for households that have received assistance. |
REC339-4485 | 1 - Land-use and building regs | The Committee recommends the Australian Government collaborate with state governments to implement measures to repurpose areas with high flood risk for alternative purposes, including returning developed land into a predeveloped state or repurposing land for recreational or agricultural use. |
REC339-4486 | 6 - Insurance and legal liability | The Committee recommends that insurers explore offering innovative insurance products that have the potential to improve the operation of the insurance market, including: |
REC339-4487 | 6 - Insurance and legal liability | The Committee recommends that the New South Wales and Tasmanian governments collaborate with industry and local governments to reform emergency services levies, aiming to enhance premium affordability and reduce barriers to insurance uptake. |
REC339-4488 | 24 - Govt responsibility | The Committee recommends that state and territory governments remove state-based taxes on general insurance products and shift the tax burden toward less distortionary taxes. Where state or territory governments reduce taxes or levies on insurers, that insurers commit to passing these savings on in full through lower premiums. |
Rec-ID | Code | Recommendation |
---|---|---|
REC235-2809 | 32 - Doctrine, standards, and reform | The Australian National Audit Office recommends that the Department of Regional Australia, Local Government, Arts and Sport improve the arrangements for conducting value for money reviews of Victorian reconstruction projects by pursuing amendments to the operating protocol with Victoria to require that, at regular intervals, the Taskforce is provided with information on all reconstruction projects being delivered within the scope of the National Partnership Agreement. |
Rec-ID | Code | Recommendation |
---|---|---|
REC234-2810 | 38 - Agency/Department Reporting | The Australian National Audit Office (ANAO) recommends that the Australian Government Reconstruction Inspectorate and the National Disaster Recovery Taskforce seek to maximise the benefits from their value for money review activities by obtaining more timely and comprehensive information on project progress and completion from the Queensland Reconstruction Authority, to enable the preliminary value for money assessments to be finalised based on the scope and cost of works that were actually delivered (rather than estimates). |
REC234-2811 | 32 - Doctrine, standards, and reform | In order to maximise the envisaged benefits from the Inspectorate’s program of value for money reviews, the Australian National Audit Office (ANAO) recommends that the National Disaster Recovery Taskforce improve the application of the sampling approach to make it more representative of the |
REC234-2812 | 37 - Funding | In order to further build on the value for money review work being undertaken by the National Disaster Recovery Taskforce (on behalf of the Australian Government Reconstruction Inspectorate), the Australian National Audit Office (ANAO) recommends that the Taskforce: |
REC234-2813 | 38 - Agency/Department Reporting | To strengthen its oversight of Queensland reconstruction progress, the Australian National Audit Office (ANAO) recommends that the National Disaster Recovery Taskforce: |
Rec-ID | Code | Recommendation |
---|---|---|
REC187-2918 | 21 - Role of Commonwealth Government | That an agency sponsored by the Commonwealth Government be created to manage the national coordination of flood risk management and to operate a system of premium discounts and a flood risk reinsurance facility, supported by a funding guarantee from the Commonwealth. |
REC187-2919 | 6 - Insurance and legal liability | That all home insurance, home contents and home unit insurance policies include flood cover. |
REC187-2920 | 6 - Insurance and legal liability | That a system of premium discounts be introduced in order that most purchasers of home insurance, home contents and home unit insurance policies in areas subject to flood risk be eligible for discounts against the full cost of flood insurance. |
REC187-2921 | 6 - Insurance and legal liability | The Commonwealth Government guarantee the payment of claims by ensuring that, whenever a funding shortfall occurs in the reinsurance facility through claims exceeding the funds held in the facility, the Commonwealth would meet the shortfall and the Commonwealth would seek reimbursement of a portion of the shortfall from the State or Territory government in whose jurisdiction the flood occurred. |
REC187-2922 | 6 - Insurance and legal liability | That all home building insurance policies include flood cover. |
REC187-2923 | 6 - Insurance and legal liability | That home building and home contents insurance should not be made compulsory. |
REC187-2924 | 6 - Insurance and legal liability | That whenever flood cover is included in home building insurance policies: |
REC187-2925 | 6 - Insurance and legal liability | That the following five principles underpin the design of a system of premium discounts: |
REC187-2926 | 6 - Insurance and legal liability | That flood premium discounts be provided for home building insurance for eligible homes: |
REC187-2927 | 6 - Insurance and legal liability | The levels of the discounts and the phasing out periods be reviewed from time to time. |
REC187-2928 | 6 - Insurance and legal liability | That there be limitations on the size of the discount available to high-value homes. |
REC187-2929 | 6 - Insurance and legal liability | That all home unit insurance policies include flood cover, in the same manner as for homes. |
REC187-2930 | 6 - Insurance and legal liability | That flood premium discounts be provided, in the same manner as for homes, to the bodies corporate of eligible properties, and on the same basis as for detached homes. |
REC187-2931 | 6 - Insurance and legal liability | That the definition of a home for the purposes of flood cover and flood premium discounts be any building for which a homeowner purchases a home insurance policy. |
REC187-2932 | 6 - Insurance and legal liability | That all home contents insurance policies include flood cover. |
REC187-2933 | 6 - Insurance and legal liability | That discounts be provided, in the same manner as for homes, to home contents insurance policies for eligible properties. |
REC187-2934 | 6 - Insurance and legal liability | That all insurers offering small business insurance be obliged to include flood cover on an opt-out basis, instead of an opt-in/opt-out basis as at present, in all of their small business package policies. |
REC187-2935 | 6 - Insurance and legal liability | That flood premium discounts not be provided to small businesses and that the reinsurance facility not offer reinsurance for small businesses. |
REC187-2936 | 6 - Insurance and legal liability | That the questions of flood cover as standard in small business policies and access to discounted premiums for small business policyholders should be revisited once the recommended arrangements for homes, home units and home contents are in place. |
REC187-2937 | 6 - Insurance and legal liability | That flood premium discounts be delivered through a model that requires insurers to retain and price a portion of the risk with the remainder to be ceded to the reinsurance facility at a discounted reinsurance premium. |
REC187-2938 | 6 - Insurance and legal liability | That for home building insurance policies receiving full discounts, policyholders pay for that portion of the risk retained by the insurer and pay nothing for the remainder of the risk up to $500,000. For properties with a value greater than $500,000 policyholders then pay the full cost of the portion of risk exceeding $500,000. |
REC187-2939 | 6 - Insurance and legal liability | That for body corporate insurance policies receiving full discounts, policyholders pay for that portion of the risk retained by the insurer and pay nothing for the remainder of the risk up to $500,000 times the number of units. For properties with a value greater than $500,000 times the number of units policyholders then pay the full cost of the portion of risk exceeding $500,000 times the number of units. |
REC187-2940 | 6 - Insurance and legal liability | That for home contents insurance policies, policyholders pay for that portion of the risk retained by the insurer and pay nothing for the remainder of the risk up to $100,000. For contents with a value greater than $100,000 policyholders then pay the full cost of the portion of risk exceeding $100,000. |
REC187-2941 | 6 - Insurance and legal liability | That homes at high and extreme risk of flood be provided with discounts initially and that they be assessed regularly for mitigation work already undertaken and the potential for further mitigation. |
REC187-2942 | 6 - Insurance and legal liability | That a flood risk reinsurance facility, or reinsurance pool, be established which would have two primary functions: |
REC187-2943 | 6 - Insurance and legal liability | That the Commonwealth Government guarantee payment of claims from the reinsurance pool by ensuring that, whenever a funding shortfall occurs in the pool through claims exceeding the funds held in the pool, the Commonwealth would meet the shortfall. |
REC187-2944 | 6 - Insurance and legal liability | That the Commonwealth seek reimbursement of some portion of the shortfall from the State or Territory government in whose jurisdiction the flood occurred. |
REC187-2945 | 6 - Insurance and legal liability | That to facilitate flood risk information being made publicly available, Commonwealth, State and Territory governments grant indemnities to the providers of flood risk information if the information is obtained and provided in good faith and in the absence of any gross negligence. |
REC187-2946 | 21 - Role of Commonwealth Government | That a national agency sponsored by the Commonwealth Government be established to undertake national coordination of flood risk management and to operate the system of premium discounts and the flood risk reinsurance facility. The Agency would: |
REC187-2947 | 6 - Insurance and legal liability | That the Agency charge insurers a small administrative fee for each policy ceded to the reinsurance facility. |
REC187-2948 | 6 - Insurance and legal liability | That: |
REC187-2949 | 6 - Insurance and legal liability | That all home, contents and home unit insurance policies cover the policyholder for storm surge, tsunami and landslide, where the storm surge, tsunami or landslide is the result of another event that is covered under the policy and regardless of whether the insured property directly suffers damage from the underlying insured event. |
REC187-2950 | 6 - Insurance and legal liability | That the Commonwealth engage with the insurance industry and the States and Territories in planning for the future coordination of charitable and government payments to individuals to assist with recovery after future natural disasters. |
REC187-2951 | 6 - Insurance and legal liability | That access to insurance be enhanced through the development of alternative payment options, in particular: |
REC187-2952 | 6 - Insurance and legal liability | That lending institutions remind mortgagors annually of their obligations to hold home insurance and of the risks of under-insurance in order to minimise non-insurance and under-insurance of homes. |
REC187-2953 | 6 - Insurance and legal liability | That all home building insurance policies providing sum insured cover be modified by the end of 2014 so as to include replacement value cover in the event of total loss of the home. That during the transition period insurers consider how the design features of home building replacement value policies should respond following a natural disaster, including the conditions under which cash settlements are to be offered and finalised. |
REC187-2954 | 6 - Insurance and legal liability | That subsection 35(2) of the Insurance Contracts Act 1984 be amended so that policyholders are not deemed to be clearly informed of a deviation from ‘standard cover’ by simply being provided a copy of the insurance policy or product disclosure statement. |
REC187-2955 | 6 - Insurance and legal liability | That, in endorsing the Government proposal for a Key Facts Statement, the Key Facts Statement list replacement cover and all natural disaster events, identified as ‘standard cover’ in the Insurance Contracts Regulations 1985. That insurers issue a Key Facts Statement to policy holders with all new policies written and all policy renewals on an annual basis. |
REC187-2956 | 6 - Insurance and legal liability | That a ‘health warning’ be provided by insurers to the purchasers of home and contents policies that do not include full flood cover or full replacement cover. The health warning should be provided: |
REC187-2957 | 6 - Insurance and legal liability | That the Commonwealth Government introduce a standard definition of flood in the form proposed in the ‘Reforming flood insurance: Clearing the waters’ consultation paper. |
REC187-2958 | 6 - Insurance and legal liability | That, in order to give general insurance policyholders the same legal remedies as other consumers, unfair contract terms laws be applied to general insurance. |
REC187-2959 | 6 - Insurance and legal liability | That every APRA-authorised general insurer adopt and comply with the General Insurance Code of Practice. |
REC187-2960 | 6 - Insurance and legal liability | That the Insurance Council of Australia amend the Code of Practice to impose a four month time limit (subject to exceptional circumstances) to make a determination as to liability and the nature of the loss or damage with respect to a claim. That, should a claimant not receive a determination within the four month period, the claim be automatically escalated to an internal dispute resolution complaint and the insurer notify the Code Compliance Committee of the breach of the Code. |
REC187-2961 | 6 - Insurance and legal liability | That the Insurance Council of Australia repeal clauses 4.3 and 4.4 of the General Insurance Code of Practice, so that claims arising from natural disasters are subject to the same minimum standards as other claims — including the four month time limit for a determination on liability and the nature of the loss/damage with respect to the claim. |
REC187-2962 | 6 - Insurance and legal liability | That the Insurance Council of Australia amend clause 4.5 of the General Insurance Code of Practice to extend the time within which claimants in natural disasters have the right to make further claims or lodge reviews after the finalisation of an initial claim to seven months from the date of the relevant natural disaster, regardless of when the initial claim was finalised. |
REC187-2963 | 6 - Insurance and legal liability | That the Insurance Council of Australia amend the General Insurance Code of Practice to require that: |
REC187-2964 | 6 - Insurance and legal liability | That the Insurance Council of Australia amend the General Insurance Code of Practice such that the General Insurance Code Compliance Committee: |
REC187-2965 | 6 - Insurance and legal liability | That ASIC conduct a review of the General Insurance Code of Practice three years after the amendments recommended to the Code in this Review are implemented, in order to assess the effectiveness of the Code with a view to determining whether an ASIC Regulatory Guide for claims handling should then be introduced. |
REC187-2966 | 6 - Insurance and legal liability | That the Commonwealth and State governments provide funding for legal advice and assistance with insurance disputes following natural disasters. |
REC187-2967 | 6 - Insurance and legal liability | That the current formula for the cost of rebuilding of State and Territory assets under the Natural Disaster Relief and Recovery Arrangements be changed to expenditure before any insurance recoveries by the State or Territory rather than net of any insurance recoveries. |
REC187-2968 | 6 - Insurance and legal liability | That the Government give priority to introducing legislation necessary to ensure that all home, contents and home unit insurance policies include flood cover and to establish a new national agency for flood risk management and flood reinsurance purposes. |