Insurers lack basic communication skills and claims delays are adding to Queensland flood victims’ anxiety levels and contributing to mental health issues, according to two inquiries.

Testimony to both the Queensland Floods Commission of Inquiry and the House of Representatives Standing Committee on Social Policy and Legal Affairs inquiry into the insurance response to natural disasters has highlighted claimants’ frustration over delays in the claims process and a lack of communication from insurers.

Parliamentary inquiry Chairman Graham Perrett says delays and lack of information is causing mental health problems for many flood victims.

He believes tardiness and a lack of certainty given to customers would “drive people mad” and contributes to “tipping people over the edge” into depression and suicidal behaviour.

But Insurance Council of Australia (ICA) GM Risk and Disaster Planning Karl Sullivan says the council is not aware of any systemic mental health issues.

“We are working with the parliamentary inquiry and we are waiting its report,” he told insuranceNEWS.com.au. “We will respond to issues as they occur.”

Innisfail-based broker Doug Olsen, who recently spoke to the inquiry, says he hasn’t seen any general mental health issues arising, but warns there is definitely rising anxiety in the region as the next cyclone season draws nearer.

The major issues raised at both inquiries continues to be the need for more communication from insurance companies and the view that the process is taking too long.

Flood victim Sharron Campbell told the commission that although she expected some delays given the nature of the event, insurance companies need to do more to keep their clients informed rather than make them feel like they are being ignored.

“There needs to be someone appointed to simply communicate with claimants,” she said.

The Queensland Government’s submission to the state inquiry also highlights the timeframes for some claims to be settled and proposes introducing new measures to force insurance companies to pay claims if they are not dealt with in a reasonable time.

It has called for insurers to “name and shame themselves” in local and state newspapers when they are repeatedly in breach of the industry’s code of practice.

“I wonder how often these breaches would continue if insurance companies knew they’d have to pay to advertise their own bad behaviour,” Premier Anna Bligh said last week.

But Mr Olsen, a director of Far North Insurance Brokers, says such a measure would only put “undue stress” on the industry at a time when it would be stretched to its limits.

He told insuranceNEWS.com.au the Bligh Government’s proposals are “just another chance for political grandstanding over the insurance industry”.

“Our office had three to four years’ worth of claims in two weeks, and even with the magnitude of that we still delivered to our clients,” he said.

In his statement to the inquiry, Mr Olsen said there is a need for an industry-wide investigation into a catastrophe response model.

He believes if the industry set up a pool of assessors rather than each using their own dedicated staff and worked on a geographic basis rather than a company one, it would cut down on overlaps and time delays like those experienced after last summer’s Queensland floods.