Insurance Council of Australia responds to cost rise

The Insurance Council of Australia has blamed the escalating cost of natural disasters for driving the increase in insurance premium prices, saying more needed to be done to reduce risk. A spokesman for the Insurance Council of Australia said premium prices were rising, irrespective of where you lived in the country. This was due to the escalating costs of natural disasters, the growing value of our assets making them more costly to replace, inflation driving up building and vehicle repair costs, and the increasing cost of capital for insurers.

“The ICA has long been advocating for measures that reduce risk and will moderate pressures on premiums over the long-term,” the spokesman said. “This includes investment in mitigation infrastructure, changes to land use planning and building codes, home buyback programs, as well as the removal of unfair taxes and levies. The Commonwealth Government has made a commitment to review the Cyclone Reinsurance Pool, and the Insurance Council and insurers look forward to participating in that process whenever it happens.”

Since the start of the year, the ICA and insurers have participated in the insurance roundtable led by the Assistant Treasurer following Ex-tropical Cyclone Jasper, and participated in hearings to support the Joint Select Committee on northern Australia on Cyclone Reinsurance Pool.

The ICA was committed to working with government and industry partners to help improve outcomes for customers.

“Since the Black Summer Bushfires of 2019-20 insurers have paid out $16bn in claims from 13 declared insurance catastrophes or significant events, events that are still having an impact on the price of premiums for every Australian insurance customer,” he said.

He flagged ICA’S intention to campaign for the removal of stamp duty on insurance in Queensland’s state election.