Australia’s two largest personal lines insurers have announced significant widening of their flood cover offerings as the industry moves to counter the Natural Disaster Insurance Review’s push for mandatory flood cover in all property policies.

IAG says it will expand its flood insurance offering next year to provide riverine flood cover as a standard inclusion in all home and contents policies across its NRMA, SGIC, SGIO and CGU brands “subject to the availability of appropriate data”.

An IAG spokesman told insuranceNEWS.com.au that “appropriate data” meant flood mapping.

Suncorp will introduce opt-out riverine flood cover to its AAMI home and contents policies from early next year, bringing its key national personal lines brand into line with its 11 other brands which already offer flood cover.

IAG CEO Mike Wilkins says flood cover as a standard inclusion across its major brands “will give all our customers absolute certainty they are covered for stormwater and flood damage”.

He says IAG’s experience in NSW, where NRMA provides flood cover automatically to 98% of customers – giving the remaining 2% in high-risk areas the ability to opt out of flood cover – influenced its decision to make flood a standard rather than optional policy inclusion.

“The best way to maximise the number of people covered is to automatically include flood cover in the premium,” he said.

Suncorp says in a submission to the NDIR that all AAMI’s home and contents policies, aside from those designed for low income-earners, will feature flood cover as either standard, opt-out or optional.

Personal Insurance CEO Mark Milliner says Suncorp is “committed to playing its part”.

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