5 April 2011
Industry Continues Work on Flood Reforms
The Insurance Council of Australia (ICA) today welcomed the discussion paper “Reforming Flood Insurance – Clearing the Waters” released by the Hon Bill Shorten MP, Assistant Treasurer and Minister for Financial Services and Superannuation.
“The general insurance industry understands that the Australian community would like improved clarity on the availability of flood insurance and how it works. That is why the insurance industry released the ten point plan to tackle disasters,” said Mr Rob Whelan, CEO of the ICA.
Significant progress has been made on key issues outlined in the ten point plan. In particular, work is well progressed on:
• A standard definition of flood;
• Improved disclosure; and
• Flood mapping.
“The ICA and its members have welcomed the open and professional engagement of the Federal Government on working on these complex issues.” Mr Whelan noted.
The discussion paper released today by the Minister provides a relevant and solid basis on which discussion with other key stakeholders can proceed.
“I would like to reiterate that the issues currently being discussed in relation to flood insurance are not stand alone issues. These are complex issues that must be considered thoughtfully in the context of the Australian general insurance market. There is no simple quick fix and that is why a well balanced and considered package of initiatives is crucial,” said Mr Whelan.