Insurers Under Fire: Melbourne Floods Reveal Gaps and Mismatches

The information on this website is general in nature and does not take into account your objectives, financial situation, or needs. Consider seeking personal advice from a licensed adviser before acting on any information.

Madeleine Serle, Chair of the Maribyrnong Community Recovery Association, described the industry's response to the floods that hit in October and November 2022 as “unacceptably poor,” underscoring a severe letdown in expected assistance.

“It became evident fairly quickly in Maribyrnong that the very people who were supposed to assist us had utterly failed,” Serle asserted.

“The delays we faced seemed purposeful, alongside layers of confusion and inefficiency. Tasks that needed completion didn’t see the light of day, documentation vanished into thin air, and work scopes were altered in misleadingly frequent manners.

“I’ve never observed such a dysfunctional mix in any business sector. The rampant chaos, disorganization, resource misallocation, and mismanagement of subcontractors were beyond belief.”

Wennie van Riet, leading the Mental Health and Wellbeing Project at GenWest, highlighted the complexity of understanding insurance policies, which many customers found to be written in overly complicated jargon. “Policy terms are often presented in a manner only those with specialized higher education could decipher,” van Riet critiqued.

She emphasized that educating policyholders and better disaster preparedness could significantly improve their experiences and outcomes.

Another focal point was the issue of inadequate cash settlements. Various community groups have advocated for insurers to alter their methods.

“Insurers need to carefully assess whether individuals can sufficiently handle cash settlements and the ensuing project management risks,” Anglicare Victoria Financial Counsellor Kathryn Swinton explained. “It’s imperative that people understand taking cash places the project management responsibility squarely on their shoulders.”

Concerns about flood insurance affordability were also brought to the forefront. Moonee Valley Mayor Pierce Tyson reported staggering premium hikes by 50% since the flooding occurred.

“We worry that properties in Maribyrnong could become uninsurable-not in the distant future, but maybe even soon,” Tyson cautioned.

The Maribyrnong hearing marked the start of a series of three such inquiry sessions in Victoria.

Published:Thursday, 16th May 2024
Author: Paige Estritori

Please Note: We do not endorse any specific products or companies. Some content is sourced from third parties, including press releases, and may not be independently verified for accuracy or completeness.

Share this news item:

Insurance News

Clear

Medical Timing Decides Travel Insurance Claim Dispute

21 Jun 2026: Paige Estritori

A recent travel insurance dispute reported by Insurance News has put a spotlight on one of the most important parts of any cancellation claim: timing. The case involved a policyholder who argued that a doctor’s declaration that he could not travel overseas was the relevant claimable event, rather than the earlier appearance of illness. The policyholder was successful, reinforcing that the way a medical issue is documented can be just as important as the condition itself. - read more

Why the General Insurance Code Review Matters for Real Estate Agencies

21 Jun 2026: Paige Estritori

Australia’s general insurance sector appears to be moving closer to a major update to the General Insurance Code of Practice, with Financial Services Minister Daniel Mulino signalling that the long-running review should make visible progress soon. For real estate agencies, this is worth watching closely because the code influences how many insurers communicate, manage claims and resolve disputes. - read more

General Insurance Code Review Puts Service Standards in Focus

21 Jun 2026: Paige Estritori

Australia’s general insurance sector is edging closer to a significant reset of its customer service rulebook, with Financial Services Minister Daniel Mulino indicating he wants meaningful progress on the long-running review of the General Insurance Code of Practice. A draft of the revised code is expected to move towards consultation shortly, following a review process that began in November 2023 and produced more than 100 recommendations in late 2024. - read more

Victoria’s Strata Commission Debate Moves Into a New Phase

21 Jun 2026: Paige Estritori

Victoria’s strata reform agenda has taken another important turn, with consumer advocates continuing to push for a ban on insurance-related commissions paid to owners corporation managers after the state government chose to defer immediate action on the issue. - read more

Insurance Code Rewrite Could Lift Standards for Tradies

21 Jun 2026: Paige Estritori

Australian tradies could soon see an important shift in how general insurers are expected to communicate, manage claims and resolve disputes, with the industry’s General Insurance Code of Practice moving closer to a major rewrite. - read more

Click for more Insurance News