Residents of western Melbourne communities affected by damaging floods voiced strong criticism of insurers at today’s federal inquiry hearings in Maribyrnong.

Maribyrnong Community Recovery Association Chair Madeleine Serle said the industry’s behaviour was “beyond egregious” after floods in October and November 2022. 

“We first realised quite quickly in Maribyrnong that those who were meant to look after us ... let us down,” she said. 

“There is a deliberate sport of delay, obfuscation, analysis ... things that are supposed to be done aren’t done, things that are written about disappear, and scopes of work are written backwards and forwards and get changed in a way that is absolutely misleading. 

“I have never seen a more disorganised rabble of a business ever. The level of chaos, disorganisation, mismanagement of resources, and mismanagement of subcontracts, every which way they operate on ground was quite amazing.” 

GenWest Project Lead on Mental Health and Wellbeing Wennie van Riet said many customers struggle to understand policy terms and what they are covered for because insurers avoid plain language. “Insurance companies struggle to explain their policy details in a language that people can understand unless you have done a study or have a master’s degree involved in insurance.” 

She said education and disaster preparation are vital to improving policyholder outcomes.

Inadequate cash settlements were also flagged as an issue, with community groups calling for insurers to change their approach. 

“Insurance companies need to assess the capability of a person to accept the cash settlement and manage the rebuild and risks,” Anglicare Victoria Financial Counsellor Kathryn Swinton said. “They also need to be told that if they take the money, they are responsible for the rest of the project.”

Councils also expressed concern over flood cover affordability, with Moonee Valley Mayor Pierce Tyson highlighting a 50% premium increase since the floods.

“We’re concerned that Maribyrnong and our properties are uninsurable – not in the long term but in the medium term,” he said.

Today’s hearing was the first of three in Victoria, with the inquiry committee heading to Rochester tomorrow and Heathcote on Friday.