The National Insurance Brokers Association (NIBA) says it welcomes the Federal Government decision to launch a Parliamentary inquiry into insurers’ response to last year’s record flooding. 

Assistant Treasurer Stephen Jones says the inquiry will take a “whole-of-economy” view in investigating the preparedness of insurers to respond to the frequency of intense flood events and will consider supply chain issues, skills and labour shortages, claim handling and communication with policyholders. 

“Following these devastating events, NIBA has worked with the Insurance Council of Australia (ICA) to ensure that feedback from those on the ground is used to improve the claims-handling process and we look forward to sharing these insights with the inquiry,” NIBA said in a statement. 

“With the intensity and frequency of these extreme weather events increasing, NIBA commends the inquiry for taking a whole-of-economy view, to improve outcomes for Australian consumers.”  

NIBA says brokers play a crucial role as advocates for clients, ensuring they receive the support and cover they are entitled to. 

“Australians impacted by the events have faced ongoing challenges both at the time of claim and during the rebuilding process,” it said.   

ICA CEO Andrew Hall has said the group hopes findings can contribute to insurance affordability and disaster mitigation solutions. 

“Any review that supports the ability of insurers to improve how they carry out their crucial function is welcome, and we look forward to participating,” he said. 

“In addition, the Insurance Council is urging the inquiry to examine the impact of state insurance taxes on customers’ capacity to appropriately insure, as well as how the impact of past decisions on land use planning and disaster mitigation impact community risk and insurability.”