Preparing for the Cyclone Season

22 October 2008

The Insurance Council of Australia has today issued a reminder to residents and business owners in cyclone prone regions, to ensure they are prepared for the risks of the approaching cyclone season. Bureau of Meteorology forecasting has been released for the upcoming cyclone season, with an “above normal” level of cyclone activity generally expected.

“Cyclones in Australia cause substantial damage on a yearly basis and can impose a severe financial strain for consumers and business without adequate insurance coverage,” said Kerrie Kelly, Insurance Council of Australia, Chief Executive.

“Going into the cyclone season, it is strongly advised that policyholders should review their home and contents insurance and to ensure that it provides appropriate coverage to protect their home and assets in the event of a cyclone occuring,” said Ms Kelly. “It is equally important for business owners to ensure that their assets and operations are protected through insurance and can withstand business interuption.”

“Non-insurance is a major issue impacting on Australians. Recent analysis shows that 26% of small and medium business operators do not take out insurance to protect themselves in the event of a catastrophe. Approximatley 40% of sole traders were shown to also not take out insurance cover,” said Ms Kelly.

The Insurance Council is continually working with state and territory governments and community groups to create awareness about the need for appropriate insurance.

“The best way to manage the risk of cyclone is for people to be mindful of the environment in which they live and take appropriate mitigation steps to minimise the potential impacts of extreme weather events, including the replacement value of your property and assets” stated Ms Kelly.

“Consumers should refer to advice given by State Emergency Services and local government in order to physically prepare for the oncoming season as well as ensuring that their property is properly maintained,” said Ms Kelly. “Insurance policies typically require that a property has been maintained well and that there are no existing defects that could exacerbate weather risks. Consumers should consult their policy documents and ensure that they comply with all provisions.”

For a PDF copy of this media release please click here.

Media enquiries: Sean Sampson 02 9253 5161 0423 482 884