Claims from natural disasters should be assessed as quickly as any others and more progress is needed on industry issues such as the code of practice, floods and cover for elderly people, Financial Services Minister Bill Shorten says.

Insurance staff will be under pressure as natural disaster claims “will now be assessed in the same timeframe as other claims”, Mr Shorten told an Insurance Council of Australia reception in Canberra.

“It will make right some of the wrongs of the Queensland floods last year.”

Mr Shorten says the General Insurance Code of Practice “speaks of ‘enhanced transparency and disclosure’. It means that if we say it we mean it, and we pay up if we don’t.”

He praised the standard definition of “flood”, saying it means “people living next to each other aren’t treated differently because their policies have different wording, adjectives and nouns”.

However, he says he is concerned about the way some insurers are offering flood cover, especially when it is provided automatically without an opt-out.

“Should this become the standard for the industry, my concern is those homeowners whose homes are at very high flood risk may be forced to cancel their insurance and become uninsured because the premium is simply unaffordable,” he said.

He says a variety of products should be available to consumers, and the Government is awaiting the Productivity Commission’s recommendations on a flood reinsurance facility.

Mr Shorten is also concerned about the difficulties some elderly people have accessing travel insurance, and says there is a need to “better educate seniors about the availability of tailored insurance products”.

He says the Insurance Contracts Amendment Bill 2010 will be reintroduced to Parliament as soon as possible.

“The bill includes a number of reforms long overdue,” he said. “For example, it will remove restrictions on the electronic communication of documents, including product disclosure statements, between insurers and consumers.”

Mr Shorten ended his speech by saying he looks forward to working with insurers but “there’s a few miles to go yet”.