The Insurance Council of Australia (ICA) has reaffirmed its commitment to good communications, with ICA President Raymond Jones claiming much has already been done. And there’s more to do in that line. Mr Jones notes in the council’s just-released annual report that governments, businesses and the community don’t appreciate the link between the amount of risk that can be covered and the amount of capacity available to achieve it.

“Insurers around the world must convince investors that this business will provide sound returns and that sufficient premium is being collected for the amount of risk involved,” he said. “Otherwise there are plenty of other investment opportunities.”

The global industry’s capital base has been reduced by 25% or $US180 billion, Mr Jones said. “The risks now faced by the community and by insurers are far greater in severity and cost than anything that has been experienced before.”