Magazine

Mar 2019

Read the latest edition of AIR and MEIR as an Interactive e-book

Australia: P&C insurers rue lack of mitigation investment by govt

Source: Asia Insurance Review | Jun 2017

Australia

The Insurance Council of Australia (ICA) has called the federal Budget announced on 9 May as a “missed opportunity to invest in urgent nation-building mitigation and resilience measures”.
 
   In a response to the Budget, ICA CEO Rob Whelan noted that the government is allocating A$7.9 million (US$5.8 million) over four years to the Australian Competition and Consumer Commission (ACCC) to monitor insurance in weather-prone northern Australia. He said that the move “does not address the real problem – the impact of extreme weather on vulnerable communities”.
 
   He added: “The insurance industry will fully cooperate with the ACCC; however, the federal government has already spent tens of millions of dollars on numerous reports into insurance in northern Australia, which have concluded insurers are operating in a competitive market and are appropriately pricing risk.”
 
   Commenting on the urgent need for a significant increase in spending on nation-building mitigation infrastructure and resilience measures, he said that the allocation of A$26.1 million in disaster resilience programmes is well below the minimum A$200 million a year recommended by the Productivity Commission and overlooks the endorsement of mitigation by its own Northern Australia Insurance Premiums Taskforce. A 
 
| Print | Share

Note that your comment may be edited or removed in the future, and that your comment may appear alongside the original article on websites other than this one.

 

Recent Comments

There are no comments submitted yet. Do you have an interesting opinion? Then be the first to post a comment.