Addressing insurance availability and affordability is one of twelve priorities that the Insurance Council of Australia (ICA) has highlighted for the year ahead.

Collaborating with industry and government on the challenges will require “consideration of multi-faceted issues, stakeholders, and possible solutions”, ICA says in its annual report.

ICA has also identified a focus on tort law reform to support the provision of public liability and professional indemnity cover, along with enhancements to personal injury insurance.

The industry will need to be responsive to emerging and future economic and social issues, including around cyber risk, data rights, cost-of-living challenges and social changes, it says.

ICA is looking to further enhance its data strategy to drive advocacy and catastrophe response and preparation with a continued focus on supporting the establishment of a national approach to climate risk through climate hazard and bushfire hazard databases and a national asset and impact register.

The annual report shows an operating surplus of $1.236 million for the year ended December 31.

“This result can be attributed to position vacancies during the year due to staff turnover and competition for candidates,” President Nick Hawkins says. “Open positions continue to be an item into 2023.”

On the costs side of the ledger, expenses for events, travel and accommodation were higher with a return to in-person events.

Mr Hawkins says the sector is entering a period of significant change, and challenges include the increasingly frequent and severe impacts of a changing climate. Premiums are also on the rise as the industry grapples with high claim numbers, soaring building costs, record high inflation and the steep increase in reinsurance costs.

“It’s more important than ever that ICA continues to focus its strategy and attention on the role of insurance in the economy and in climate, because these challenges also present us with opportunities,” he says. “Maintaining our focus on these issues will enable our industry to continue to adapt and improve.”

The annual report shows the industry paid $36.5 billion in claims last year. In Queensland gross incurred claims of $3.54 billion outstripped gross earned premium of $2.72 billion, while in NSW claims of $4.53 billion topped $4.15 billion in premium, reflecting record flooding in both states.