The industry has demonstrated “positive signs” in supporting customers affected by Ex-Tropical Cyclone Alfred, an Australian Prudential Regulation Authority director says.

“This latest storm is a chance for the industry to be proactive, innovative and show the progress that has been made,” executive director of general insurance and banking Jane Magill told a conference today.

“To date, we have seen positive signs in terms of insurers’ readiness and proactivity to respond to Cyclone Alfred.”

Ms Magill told the Future of Insurance event the industry reached out to about 250,000 policyholders in the lead-up to and during the storm.

“This is commendable. We know many insurers sent employees into areas that were likely to be impacted, providing on-the-ground support and shoring up supply chains … explaining how to lodge claims quickly.”

The rare praise from APRA comes after the industry said it had worked to improve disaster responses following criticism of its handling of the 2022 floods.

Ms Magill said: “It is my hope that when it comes time to reflect on the response to Cyclone Alfred in a few weeks’ time, we will see positive signs that many lessons from past events have been heeded and incorporated into response plans in order to best support communities in time of need.”

She told the conference more than 75,000 claims have been lodged across home, motor and commercial policies.

“While the cyclone didn’t hit the mainland with quite the force we expected, there is still enormous damage,” Ms Magill added.

Her speech also touched on premium affordability and transparency matters the industry must address.

She said premium increases have moderated but remain well above the rate of inflation. Home premiums rose 16% last year and are up 92% over the past decade, the conference was told.

“Insurance coverage that is too expensive to acquire or not offered at all is a poor outcome for consumers, insurers and the government alike,” Ms Magill said.

“Insurers need to balance appropriately pricing risk to remain financially sound with offering products that meet consumers’ protection needs. And right now, the rise in natural catastrophe events – combined with issues such as higher labour and material costs – is making this a real challenge.”

She said greater pricing transparency is crucial when communities face rate increases of the scale seen in the past few years.

“APRA believes the industry could better explain how policies are priced and what risks are covered … it is critical that policyholders are given clear explanations of the factors that are driving premium rises. Otherwise, trust is eroded and the wrong assumptions can arise.”