The Insurance Council of Australia (ICA) has called for stronger collaboration between governments and insurers amid rising insurance costs, growing disaster risks, and the need to improve customer outcomes.
Speaking at the Insurance Council Annual Dinner, ICA Deputy Chair Richard Feledy said customers judge insurers not only by the products they offer, but also by how supported they feel during times of crisis. He also highlighted the importance of the updated General Insurance Code of Practice in strengthening customer protections and building trust across the industry.
Mr Feledy noted that Australia recorded seven declared insurance events in the last financial year, resulting in A$3.8bn (US$2.5bn) in insured losses from severe storms, hail, bushfires, and floods. While rebuilding costs have risen by 50% since before the pandemic due to inflation, he said long-term insurance affordability is increasingly being driven by rising disaster risks and taxes on insurance.
He also reiterated the industry’s call to reform New South Wales’ Emergency Services Levy, saying the tax increases insurance costs by 10% to 34% for households, businesses and motorists.
Looking ahead, Mr Feledy said improving affordability requires larger investment in disaster resilience and risk reduction through partnerships between governments, communities, and insurers.
He pointed to initiatives such as the Disaster Ready Fund, the Hazards Insurance Partnership, and flood buyback programmes as examples of progress, while stressing that continued cooperation will be essential to strengthen community resilience, improve customer experiences, and maintain confidence in Australia’s insurance sector.