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 Competition and Consumer Commissions final monitoring report on the cyclone reinsurance pool has delivered a mixed message for rural and regional northern Australia. The pool appears to have helped ease some premium pressure for medium to high cyclone-risk areas, including reductions across home, strata and small business building and contents cover. For farm families and agribusinesses in cyclone-exposed regions, that is welcome news after years of rising costs and limited choice. - read more
The Insurance Council of Australia’s redrafted General Insurance Code of Practice has moved into consultation, with submissions open until 21 July 2026 and a transition period of around two years expected if the code proceeds. For trade business owners, the headline change is that key insurer commitments are intended to become contractually enforceable, rather than sitting only as industry standards. - read more
Queensland trade businesses have received a welcome measure of cost certainty, with WorkCover Queensland’s average premium rate to remain unchanged for the 2026-27 financial year. The rate will stay at $1.343 per $100 of wages, marking the second consecutive year without an increase. - read more
Artificial intelligence is no longer a side project for technology teams. Fresh industry reporting on Clyde & Co’s Corporate Risk Radar 2026 points to a sharp rise in concern among business leaders, with technology risk now being treated as a core governance, regulatory and reputational issue. For Australian consultants, advisers, designers, engineers, accountants, marketers and other professional service providers, that shift has direct implications for risk management and professional indemnity cover. - read more
Vero has launched a new residential strata insurance product that could prove important for schemes finding it difficult to secure suitable cover, particularly in higher-risk northern markets. The product, introduced on 22 June 2026, is initially available in selected postcodes across Far North Queensland, from Bundaberg North, and Darwin, with a staged national rollout planned over the next year. - 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 one of the most valuable business covers available today, but it is also one of the most confusing to apply for. Many business owners expect it to work like other insurance types, where you provide basic details such as turnover, industry, and location, then receive a quote. Cyber insurance is different. It behaves less like a simple application and more like a risk interview. - 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 today’s digital landscape, Australian companies face an increasing threat from cyber criminals. The paramount importance of cybersecurity has never been more evident, with the surge of incidents exposing the vulnerabilities in organizations' digital defenses. As we usher into an era where data breaches and cyber attacks are commonplace, protecting digital assets becomes a crucial part of doing business. - 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
Insurance Claim: Notification to an insurance company requesting payment of an amount due under the terms of the policy.
No comments yet. Be the first to share your thoughts.