Another scathing article on insurers’ response to the 2003 Canberra bushfires has pushed the industry to strengthen its focus on underinsurance, even though the Insurance Council of Australia has repeated its assertion that it’s up to policyholders to choose how much cover they take.

Only a couple of weeks after The Bulletin magazine story headed “Burnt offerings”, Fairfax newspapers published an article blaming the insurance industry for the repercussions of the bushfires.

It said only 10% of the 500 homes destroyed in the blaze have been rebuilt thanks to being underinsured.

The Insurance Council of Australia repeated its comment that the industry did “an impressive job” after the fires but stresses that underinsurance continues to be a problem in any major disaster.

Spokesman Rod Frail said although the industry continues to warn policyholders to check they’re sufficiently covered, “it’s ultimately up to them how much cover they obtain”.

And he rejects comments by Institute of Architects spokesman Catherine Townsend that insurance companies encourage people to insure at rates significantly less than are appropriate.