Andrew Hall, CEO of the Insurance Council of Australia (ICA), commenced his address this morning at the 2022 floods inquiry with a formal apology on behalf of the insurance industry.
“I would like to start by apologizing on behalf of the insurance industry to those customers whose claims were not handled to the standard our industry strives to achieve,” expressed Hall during his opening statement.
The hearings, slated to span the next four weeks, constitute a vital component of a federal inquiry undertaken by the House Standing Committee on Economics. This inquiry scrutinizes insurers’ responses to claims arising from the devastating floods.
Hall’s appearance marks the first instance of direct representation from the insurance industry. Preceding this, testimonies were heard from consumer groups and regulatory bodies. Notably, these proceedings are broadcast publicly via live stream.
Acknowledging the unprecedented challenges posed by the 2022 floods, Hall emphasized the strain they exerted on insurers’ operational frameworks and personnel.
“There’s no doubt the floods of 2022 were very challenging, and they tested insurers’ systems, processes, and people like never before,” remarked Hall. He further added, “Insurers and their staff worked day and night to meet the needs of their customers, the majority of whom had their claim resolved in a satisfactory way.”
Nonetheless, Hall candidly admitted that “not all systems or processes of insurers passed the test.”
The widespread impact of the inundations across the east coast, spanning from south-east Queensland to Tasmania, has left a profound imprint on many thousands of individuals.
As outlined on the inquiry’s official website, “The trauma is continuing for many people – with delays in being rehoused just one issue.”
Today, Suncorp Group, Insurance Australia Group (IAG), and Youi are slated to provide their testimonies before the inquiry.
The committee is tasked with delivering its findings by September 30, 2024, signaling the urgency and significance of addressing the aftermath of the 2022 floods comprehensively.
