The Insurance Council of Australia (ICA) has called on National Cabinet to develop arrangements to assist the industry’s natural disaster responders as the country approaches the high-risk catastrophe season with COVID-19 border restrictions hindering travel.

A streamlined process is required to facilitate movement of claims assessors, disaster recovery specialists, builders and tradies in a COVID-safe way between and within states and territories, CEO Andrew Hall says.

“We appreciate the need for restrictions to mitigate health risks, however these must be balanced against the needs of those requiring urgent repairs to their properties that will enable them to pick up their lives and move on,” he said today.

Mr Hall told ABC Radio Canberra that state, territory and federal governments needed to consider disaster scenarios and put in place a national approach ahead of a catastrophe happening, with agreements reached last year no longer in place for the current round of pandemic restrictions.

“Unfortunately, with the Delta variant we saw borders close again and this time no exemptions being offered,” he said. “The worst-case scenario would be for an event to happen and then we spend weeks and weeks trying to work out whether people can travel in to help those communities.”

The ICA Insurance Catastrophe Resilience Report released today shows five disasters between last October and June generated 134,000 claims totalling $2.28 billion.

The disasters include Cyclone Seroja, which hit WA in April. Strict COVID border restrictions have affected deployment of disaster specialists and builders to the state since then, while other regions have also experienced issues.

ICA says disasters usually lead to a surge of claims beyond the capacity of local workforces and COVID has exacerbated shortages of builders and tradies. Pandemic impacts have also increased costs for materials and parts, with repercussions for property underinsurance and leading to more cars being written-off rather than repaired.

Mr Hall says full vaccination and, potentially, rapid antigen testing could facilitate the rapid deployment of personnel across the country.

The National Insurance Brokers Association (NIBA) says it strongly supports ICA’s call for a national approach that would lessen restriction impacts, with brokers among those facing challenges being on the ground and supporting clients.

“Insurance brokers are essential in helping their clients navigate preparations for, and recovery from, natural disasters and major weather events,” CEO Dallas Booth said.

“They are on the front line and have seen first-hand the challenges presented by state border restrictions, as they help their clients navigate the recovery from natural disasters.”

The Insurance Catastrophe Resilience Report, which is set to be an annual publication, outlines six policy action areas, including the national approach for personnel movement.

ICA also seeks improvements in disaster waste and debris clean-up, which is led by state and federal agencies but often delayed due to planning and approval activity necessary in the absence of pre-existing arrangements.

The report proposes that state and federal emergency response agencies leverage insurers’ expertise and collaborate with the sector and other agencies on standardised arrangements.

ICA reiterates calls for more investment in resilience, particularly at a state level, improved building quality and standards, better land use planning and the removal of state taxes on insurance.