Suncorp has proposed that the Federal Government work with the states and territories to provide targeted cash refunds of insurance stamp duty to address immediate affordability issues. 

The refunds could be made available for taxpayers in high natural hazard risk zones and in low-income brackets, Suncorp says in a submission to the federal parliamentary inquiry into insurers’ responses to last year’s floods. 

The submission presses for the complete removal of unfair and inefficient taxes and charges from insurance policies, while also putting forward a possible approach for targeted relief. 

Under a possible model, taxpayers would apply for refunds after paying the duty as part of their premiums, and if they qualify an amount would be paid by the relevant state and territory government, which would then seek to be reimbursed through Federal Government special purpose payments. 

Issues to be considered could include whether the special purpose payments should be subject to any further conditions, including resilience policy considerations. 

Insurer submissions have also responded to a range of questions put by the inquiry, including around how they are addressing staffing issues for catastrophes and complaints handling, and seeking details on approaches to flood and storm events, use of automation, cash settlements and ex-gratia payments. 

Allianz says its offering of flood as an optional cover meant that the response to claims was more complex as hydrology assessments were required to distinguish between riverine flooding and stormwater runoff.

“Given the heightened complexity of managing claims for customers without flood cover, and the customer experience throughout the 2022 floods, Allianz is reviewing our customer choice flood cover model including considering moving to mandatory flood cover and innovative product solutions (eg parametric cover) for customers exposed to flood risk,” the submission says. 

Allianz recommends that the Federal Government undertake a feasibility study on options for a national flood reinsurance pool to address cover affordability problems for high-risk homeowners. 

QBE says following its experiences with last year’s floods it has increased its resourcing by establishing a dedicated National Claims Response Team (NCRT) with 25 permanent people. 

“The NCRT is designed so we have sufficient and immediately available resources to support and stabilise short term service levels, while recruitment, onboarding and training of temporary resources occurs in parallel,” its submission says. 

IAG says it has invested in a Dedicated Major Event Response Team and that 12 additional builders brought on board during last year’s events have remained preferred partner repairers to support future large-scale disasters. 

Submissions are available here.