Insurers must evolve beyond being cash machines for claim cheques to become community citizens, according to Zurich Australia CEO David Smith.

He told the Insurance Council of Australia’s annual Canberra conference last week that increasing customer expectations and the risks posed by climate change mean the days of the passive insurer are over.

“Traditionally the general insurance industry has congratulated itself on handing over a cheque. With the strong likelihood of major disasters through global warming this is no longer enough.”

Mr Smith says the industry’s response to recent catastrophic storms in NSW and Victoria, and flooding in the UK is just the beginning of how insurers must respond in future.

Apart from some negative publicity over rejected claims in Victoria’s Gippsland region, insurers have been mostly praised for their rapid and efficient response to the storms.

Many companies, including CGU Insurance – recently criticised for rejecting a dozen flood claims in Gippsland – went beyond paying claims by approving short-term cash advances, providing generators and on-site “help vans” to process customer claims and inquiries.

Mr Smith says insurers must be more creative after disasters.

“The community will – and I believe already is – increasingly looking to insurers, rightly so, to play a greater role in restoring their clients to their pre-disaster position.

“Our challenge is to move beyond traditional disaster relief to community and individual risk mitigation, and helping the community and individuals recover from the effects of climate change.”