Lunchtime wrap-up: COVID-19, climate change and consumer rights

The Insurance Council of Australia (ICA) and Allianz were quizzed by politicians on a broad range of issues this morning, as House of Representatives Standing Committee on Economics hearings got underway.

The atmosphere was not as hostile as some feared, but there were still tough questions posed as MPs analysed industry responses to Hayne royal commission recommendations, coronavirus and natural disasters.

Chief interrogator turned out to be the committee's Deputy Chairman Andrew Leigh, who clearly has a number of pet issues to try to resolve.

He’s taken up Choice’s battle for a standard definition on fire, despite insurers previously explaining there is little evidence of a problem.

And he’s outraged by landlord insurers directly pursuing COVID-19-hit tenants for unpaid rent – even though it’s not clear that anybody’s doing any such thing.

Dr Leigh also took aim at Allianz for failing to commit to motor insurance refunds as a result of reduced claims during COVID-19 shutdowns.

"It seems a bit heads I win, tails you lose," Dr Leigh responded, after MD Richard Feledy outlined a more considered approach.

Greens leader Adam Bandt has focused on the issue of climate change. He wants ICA and its members to admit we’re heading for disaster and uninsurability, but the industry is being a little more circumspect.

Craig Kelly, on the other hand, believes talk of this past summer being our worst ever for natural disasters is an exaggeration, and that climate change isn’t affecting insurance claims levels at all.

AFCA was very complimentary about insurers post-royal commission, but believes disclosure remains a major issue that still needs to be tackled.

Meanwhile ICA revealed that it’s working with Finity to consider “broad options” for some level of insurance cover the next time pandemic strikes.

The hearing resumes at 2pm.