Insurers Under Scrutiny for Response to Alfred Flood Claims

1

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.

Speaking before an upcoming Insurance Council of Australia (ICA) meeting set to address policyholder issues, Mr. Lee highlighted widespread dissatisfaction among flood-affected businesses regarding their insurance claims. According to him, while some insurers have been proactive, others are rapidly dismissing any responsibility for flood-induced damage.

Mr. Lee shared insights based on data from the state's business disaster recovery initiative. He noted a growing trend where business owners are struggling with insurance complications as they strive to recover from the calamity that hit in March. He criticized certain insurers for demanding exhaustive hydrology reports from already distressed clients and called for more efficient resolutions to these pressing claims.

Emphasizing his point, he recounted the ordeal of a local butcher whose shop faced significant damage estimated at more than $300,000. Despite having paid insurance premiums for nearly two decades, the business owner now finds himself in dire financial straits, having to cover employee wages from his depleting savings, without any incoming revenue.

According to the ICA, insurers have processed over 100,000 claims amounting to nearly $1 billion due to Alfred's impact. Hervey Bay, particularly, suffered severe consequences, leading the ICA to label the incident a catastrophe. They plan to hold a meeting in Hervey Bay on May 15 to address ongoing concerns.

Liam Walter, ICA's director of mitigation and extreme weather response, emphasized the importance of direct engagement in Hervey Bay. The council aims to ensure comprehensive support and resolution for those affected, with expectations that assessments and discussions around rebuilding are well underway by now.

Published:Monday, 5th May 2025
Source: Paige Estritori

Please Note: If this information affects you, seek advice from a licensed professional.

Share this news item:

Insurance News

Clear

Insuregroup's Remarkable Growth Reflects Surge in Truck Insurance Demand

17 Feb 2026: Paige Estritori

Insuregroup, a specialist insurance brokerage serving Australia's transport and logistics sector, has recently announced a significant milestone: processing over 10,000 insurance policies since its inception, with a 25% increase in policy volume over the past year. This growth underscores the escalating demand for comprehensive truck insurance solutions tailored to the unique needs of Australian freight operators. - read more

Updated Heavy Vehicle Code Extends Safety Responsibilities Across Industries

17 Feb 2026: Paige Estritori

The National Heavy Vehicle Regulator (NHVR) has released an updated Master Code of Practice, marking the first revision since 2018. This update broadens the scope of safety guidelines beyond traditional road transport businesses to encompass industries such as manufacturing, construction, mining, retail, and logistics. The expansion aims to provide clearer and more relevant guidance for businesses that rely on heavy vehicles, emphasizing a shared responsibility for road safety. - read more

Australian Trucking Association Challenges Proposed Fuel Tax Increase

17 Feb 2026: Paige Estritori

The Australian Trucking Association (ATA) has strongly opposed a proposal by the Productivity Commission to phase out fuel tax credits for trucking operators, a move that would effectively double the fuel tax paid by the industry. This recommendation, outlined in the commission's final report on the net zero transformation, suggests increasing the effective fuel tax rate from the current 32.4 cents per litre to 66.1 cents per litre by 2035. - read more

Budget Direct Triumphs as Australia's Top Insurer in 2026

17 Feb 2026: Paige Estritori

In a remarkable achievement, Budget Direct has been honoured as the inaugural 'Insurer of the Year' at the 2026 Finder Provider of the Year Awards. This prestigious recognition underscores the company's unwavering commitment to delivering exceptional value and service to Australian policyholders. - read more

Australian General Insurers Report Record Profits Following Premium Increases

17 Feb 2026: Paige Estritori

In 2024, Australia's insurance industry reported an after-tax profit of $6.1 billion, a figure that is three times higher than the five-year average of $2 billion. This substantial increase is attributed to a combination of factors, including significant premium hikes and a reduction in severe weather events. - read more

Click for more Insurance News