The flooding comes after insurers’ budgets for natural disasters have been repeatedly exceeded in recent years:last year’s East Coast flooding was the most expensive natural disaster for insurers in Australian history.
Spending on cyber insurance could surge to more than $800 million in the next two years,as Optus,Medibank hacks put businesses on notice.
The High Court rejects a further appeal in the dispute over “business interruption” cover,and whether insurers are liable for losses associated with pandemic lockdowns.
The likelihood of more frequent and severe disasters is adding to pricing and affordability challenges,says the head of insurance giant IAG.
The insurer has signalled premiums for home and motor cover will rise by between about 5 per cent and 9 per cent,and warned of persistent delays in repairing damage.
The company behind some big insurance brands,including NRMA and SGIO,was once seen as a market darling,but it has underperformed markedly recently amid growing concerns about climate change risks.
The flooding disaster in NSW and Queensland has prompted market experts to predict home insurance premiums will rise at an even faster pace.
Two of Australia’s biggest insurance companies,IAG and QBE,are calling for debate about planning rules in flood-prone areas.
The insurance giant is back in black,swinging to a profit after hiking premiums and growing volumes. But the headline result was hamstrung by higher-than-expected natural perils claims.
IAG boss Nick Hawkins has drawn a line under the insurer’s governance failures by launching a revamped strategy aimed at signing up a million new customers over the next five years.
An error in a crucial policy exclusion has put the country’s largest general insurer on the hook for more than $1 billion. Now,a specialist law firm is about to launch a shareholder class action.