Insurers have supported measures that would reduce fire dangers linked to lithium-ion batteries as a review by the Australian Competition and Consumer Commission (ACCC) gets underway. 

The Insurance Council of Australia (ICA) says it is not planning on making a submission to the ACCC consultation as fires started by lithium-ion batteries are not currently a “significant” issue for insurers.   

But the peak body would “support measures undertaken to reduce the chance of fire, injury, fatalities and property damage as determined by experts in the fire and safety sector,” a spokesman said. 

The ACCC released an issues paper for consultation this month to understand the risks, citing an increasing number of incidents involving lithium-ion batteries, some of which have caused house fires resulting in serious injuries and property damage. 

“There is no regulatory framework or mandatory safety standard which squarely addresses the risks with lithium-ion batteries in Australia,” the paper says. 

“Suppliers of lithium-ion batteries in Australia may choose to comply with aspects of relevant voluntary or international standards and regulations.” 

Allianz says lithium-ion battery fires are an emerging risk and the insurer is undergoing learning and research in this space. 

“Allianz’s focus for this research is to communicate learnings about risks to customers and partners,” a spokesman said. 

“Allianz does not exclude fires caused by lithium-ion batteries in home insurance PDS or motor insurance PDS.” 

The spokesman says insurance cover for the home is subject to the terms and conditions of the insurance product including customers responsibilities to maintain their properties. 

The ACCC issues paper says lithium-ion batteries are generally rechargeable and are used for powering many popular consumer items such as cordless vacuums, mobile phones, smart wearables and e-bikes. 

Lithium-ion batteries are “more volatile” than traditional ones because of the chemistry components inside them. 

“The most dangerous outcome… is the potential to rapidly overheat and cause fires that cannot be easily extinguished, leading to property damage, serious injury and/or fatality,” the paper says. 

Closing date for submissions to the ACCC paper is February 3. 

Click here for the ACCC issues paper.