INQ330

Catastrophe plans should contain sufficient detail on: event declaration protocol, roles and responsibilities, resourcing strategy, communication strategy, logistical management, risk management, staff health and safety measures, reporting and governance to act as a reliable course of action and

Insurers should consider triaging to accelerate claims in a catastrophe, including batching, automating and bulk processing cohorts of claims.

Insurers would benefit from an integrated infrastructure that allows them to understand, track and monitor claims, including third-party supplier involvement, to enable improved decision making and better interaction and information provision to customers.

To support customer communication, insurers could consider an app or portal for customers to self-serve information on claim process, status, time to next update, key contact details etc. Further advancements could include the ability to extract claim details for third-parties (e.g.

Advanced technologies Insurers should consider the commercial feasibility of technologies such as machine learning, automation and generative AI to improve handling times and customer experience, particularly in the context of responding to a catastrophe

Insurers should improve data capture, modelling and reporting to assist with identifying and mitigating against factors that impact their ability to progress claims in response to a catastrophe, including bottlenecks (e.g. hydrology reports).

ICA data capture To provide greater transparency on the industry’s response to catastrophes, the ICA should develop a data dictionary to enhance industry-wide reporting and investigate the feasibility of extending data capture to other claim outcome measures such as closure rates, quality and com

Improved coordination between insurers and government is required when access to government disaster funding requires evidence of an insurance claim status.

Standardised guidance should be jointly developed by the insurance industry and government on clean-up processes after a severe weather event.

Improvements should be made to encourage investments in resilience and adaptation when rebuilding following a catastrophe or severe weather event (where this is cost-beneficial).

An objective definition of an Extraordinary Catastrophe should be developed. This definition should be based on factors such as the type and scale of a weather event, the size of the population impacted and the macroeconomic conditions.

Insurers should review the manual processes that result in bottlenecks during catastrophes, to consider how digitisation or re-engineering would improve claim processing.

Onboarding, training and competency frameworks to prepare new hires for claims and complaint handling roles during a catastrophe should be reviewed or established.

Insurers should conduct operational and economic stress testing to identify and understand vulnerabilities within their product portfolio, operations and dependencies on market conditions when responding to catastrophes.

Post event reviews should be completed within 12 months of the initial event and should have clear outcomes, actions and owners to drive areas of identified improvements. Insurers should consider getting an “outside-in” view of performance as part of any review.

Where policy terms are known, or expected, to create bottlenecks or claims handling delays during periods of high claim volumes, insurers should consider how or if the policy terms or associated claims processes can be changed.

The ICA should consider introducing a baseline category as part of the Insurance Event Management Plan to support industry and community preparedness for extreme weather events.

Communication should be improved through a holistic review and improvement of the customer journey before, during and after catastrophes.

Insurers should improve the consistency of the customer experience through decision making, by enhancing governance and quality assurance standards.

Insurers should review the effectiveness of the definition, identification and support of vulnerable customers during catastrophes.

Insurers should improve the ways they embed a “voice of customer” into their operations, through a customer advocate or alternate means, and take meaningful action to incorporate lessons learned.

Workforce planning functions should be reviewed or bolstered, where necessary, to support better management during catastrophes.

Resourcing models for catastrophes should be diversified to mitigate against risks and dependencies in the labour market and broader economic conditions. Resourcing models should consider more than one channel to increase skilled capacity (e.g.

The type and level of relief provided to insurers in an Extraordinary Catastrophe should be considered, as should the consequences for fair and efficient claims handling. This includes: