A panel session at this year’s World Insurance Congress in Australia (WICA) will discuss how government-funded parametric insurance could assist recovery after natural disasters. 

The Australian Insurance Law Association (AILA) will host the International Association for Insurance Law’s (AIDA’s) flagship event on August 30 to September 1 at the Melbourne Convention and Exhibition Centre. 

The theme for WICA2023 is “Insurance Upside Down,” with disruption, innovation, sustainability, affordability and collaboration to be discussed.  

WICA 2023 Chair Angus Kench noted this year’s logo features an inverted world globe with Australia above Indonesia. 

“Why follow tradition and present Australia at the bottom on the world map ‘Down Under’. Surely it can be on top?,” he said. 

Clyde & Co Partner Avryl Lattin says Australia could follow the lead of some developing countries, where parametric insurance is used to enable quick post-disaster payments to help cover costs of rebuilding.  

While the Australian insurance industry responds well after natural catastrophes it takes time to get loss adjusters on site and repairs conducted, and Ms Lattin says governments could include parametric insurance as part of long-term resilience planning.  

“It could be a cheaper option than having to fund major disaster relief programs after natural catastrophes.” 

Many major Australian companies establish captives overseas in countries like Singapore and Bermuda where the regulatory regime is more conducive and this may become a larger part of the Australian insurance environment, she says. 

“It’s effectively self-insurance with reinsurance backing,” Ms Lattin said. “There needs to be discussion with regulators about the potential for more onshore captives.” 

Australia previously hosted the Congress, which is held every four years, in Sydney in 1994.  

“We’re excited to be hosting WICA2023 in Melbourne, Australia’s unrivalled capital of sport, culture, entertainment and style, and one of the world’s premier meeting and convention destinations,” Mr Kench said.  

See the event program here and register for WICA 2023 here. Early-bird offers are available until June 30.