New plans by the Insurance Council of Australia (ICA) for the co-ordination of catastrophe arrangements will result in the disbanding of the Insurance Disaster Response Organisation (IDRO).

ICA says it recognises the importance of the industry’s response to catastrophes. But it is a peak industry body, not a disaster response organisation in the same context as state and federal bodies. Its role is industry co-ordination and communication.

For that reason ICA has decided to bring back the capabilities of IDRO under the direct management of ICA in its risk and disaster planning directorate.

CEO Kerrie Kelly says the industry plays a crucial role in risk mitigation and subsequent recovery after a disaster, and the delivery of timely and effective insurance services following such an event is a crucial issue for the industry.

“In recent years federal and state disaster management arrangements in Australia have matured and developed significantly,” she said. “This maturation has been accompanied by considerable growth and change in our industry, leading to increased expectations from the community and government regarding the industry’s ability to respond following a major disaster.”

In order to meet these expectations, ICA reviewed the way it co-ordinates the industry’s correspondence with government during the recovery phase of a disaster.

“This change reflects the renewed focus and importance that the general insurance industry places upon serving the community and contributing to speedy recovery following a major disaster.”

The new catastrophe co-ordination arrangements fall under four main areas. They include providing senior industry representation, data sharing and decision support, communications (themes and messages), and problem solving or smoothing.