Although the insurance industry is showing positive signs of returning to profit, the Insurance Council of Australia (ICA) still has a massive job ahead of it managing the industry’s tarnished image and reputation.

Speaking at ICA’s annual luncheon in Melbourne last week, ICA President Mike Wilkins said a more stable insurance market brings new challenges to the industry. He said media attention over the HIH collapse has died down, there is less focus on large payouts for public liability and there are fewer stories of the difficulties faced by community groups in obtaining liability cover.

The current priorities for ICA are to manage the industry’s image, establish a single comprehensive industry data collection system, and update the industry’s code of practice to ensure better consumer protection. Other goals are to complete the tort reform process; support the implementation of HIH Royal Commission recommendations; and ease policyholders’ tax burden.    

“This year has been characterised by a return to some semblance of stability in the general insurance industry, and thank heavens for that,” Mr Wilkins said. “This is not only good news for insurers and their shareholders, it is good news for policyholders because, as the HIH experience has shown us, insurers must maintain a strong financial position in order to continue to underwrite risks in this market.”

He said there is an “untrue assumption” in the community that the tort reform program is complete. While some reforms have occurred, some states and territories are still to introduce legislative reforms. And key amendments to the Trade Practices Act – which would stop plaintiffs circumventing state laws – are yet to be passed by the Commonwealth.

Mr Wilkins said ICA will continue to push on with the campaign to abolish the fire services levy (FSL) in Victoria, NSW and Tasmania – the only states retaining the levy.

“Unfortunately a review conducted earlier this year by the Victorian Government concluded that the FSL should be retained,” he said. “Nonetheless, ICA is part of a very strong alliance of stakeholders with wide community representation in Victoria opposed to the FSL, and we will continue to press for reform.”