Insurers Under Fire: Melbourne Floods Reveal Gaps and Mismatches
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.
Residents from western Melbourne have voiced sharp disapproval of insurance companies at the recent federal inquiry hearings held in Maribyrnong, citing significant grievances post the 2022 floods.
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.
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.
The Australian commercial insurance market has maintained its soft conditions through the first half of 2026, characterized by easing pricing across most lines and a broad insurer appetite. This trend is largely driven by heightened competition, expanded capacity, and stabilizing reinsurance conditions. - read more
The 2026-27 Federal Budget, presented by Treasurer Jim Chalmers, introduces several measures with direct implications for the Australian insurance industry. These include legislated natural hazard definitions and a doubled Australian Prudential Regulation Authority (APRA) prudential threshold. However, the budget also leaves certain areas unaddressed, such as disaster funding and the Hazards Insurance Partnership. - read more
The Australian Prudential Regulation Authority (APRA) and the Australian Securities and Investments Commission (ASIC) have called for decisive action to address mounting sustainability pressures in the Total and Permanent Disability (TPD) insurance market. This call to action follows a high-level industry roundtable that brought together senior executives from 19 insurers and reinsurers, alongside representatives from Treasury and the Council of Australian Life Insurers (CALI). - read more
Insurance Australia Group (IAG), a leading general insurer in Australia, has reported a net profit after tax of AU$505 million for the first half of the 2026 financial year. This performance demonstrates resilience in the face of severe seasonal weather events that impacted the industry during this period. - read more
In a significant development for the fitness industry, AUSactive has unveiled a new insurance product specifically designed for exercise and active health professionals. This initiative, developed in partnership with global insurance broker Marsh, aims to provide enhanced protection while offering lower premiums compared to existing market options. - read more
In today's digital landscape, Australian small businesses face a myriad of cyber risks that can threaten their operations and financial stability. From sophisticated phishing scams to debilitating hacking attacks, the need to safeguard against such digital threats has never been more pressing. This introductory guide serves to illuminate the complexities of the cyber risk environment within Australia, focusing on the small business sector's unique vulnerabilities. - read more
Cyber insurance is a type of insurance designed to protect businesses from internet-based risks and, more generally, from risks relating to information technology infrastructure and activities. It covers losses related to data breaches, cyber extortion, and other kinds of cyber attacks. - read more
Cybersecurity refers to the measures and practices put in place to protect digital information and systems from attacks, unauthorized access, damage, and disruption. - read more
Cyber risk management involves identifying, assessing, and prioritizing potential risks to an organization's digital assets and implementing measures to mitigate these threats. - read more
In the digital age, Australian small businesses find themselves navigating a world where online presence isn't just an advantage, it’s a necessity. With this increased online activity comes heightened vulnerability to cyber threats, making the protection of digital assets an urgent priority. - read more
Knowledgebase
Income Insurance: Insures your income in the event of you being unable to work due to sickness or accident.
No comments yet. Be the first to share your thoughts.