3 Industry Updates for Insurance Professionals
The current condition of Australia’s insurance industry is marked by several challenges, including code breaches, natural disasters, and weather risks. The following stories delve into the present condition of Australia’s insurance industry, significant challenges ranging from increasing code breaches to rising weather risks, and the measures being implemented. We believe that staying informed will help…
By Fuse Recruitment
Insurance • April 28, 2023
The current condition of Australia’s insurance industry is marked by several challenges, including code breaches, natural disasters, and weather risks. The following stories delve into the present condition of Australia’s insurance industry, significant challenges ranging from increasing code breaches to rising weather risks, and the measures being implemented.
We believe that staying informed will help our clients better align their actions to create the best outcomes for their businesses and customers.
Keep reading for a snapshot of some articles that caught our attention.
$100,000 sanction ‘now an option’ as insurer code breaches soar – Insurance News
Insurance providers in Australia may now face community benefit payments of up to $100,000 for “egregious” breaches of the General Insurance Code of Practice, following an increase of 40% in the number of breaches reported in the year to June 2022.
The new sanctions, which were introduced by the Insurance Council of Australia (ICA) in July 2021, include community benefit payments, which have only recently become available for the Code Governance Committee to impose.
Prue Monument, GM Code Compliance and Monitoring at the Australian Financial Complaints Authority, said that any sanction would only be imposed after careful consideration, and that the committee would only consider sanctions in cases of serious and systemic issues. She added that the committee had more confidence now that the details around the payments have been agreed upon with the ICA, but that any decision to impose a sanction would be considered on a case-by-case basis.
Read more here
ICA seeks extension of disaster resilience funding – Insurance News
The Insurance Council of Australia (ICA) has urged the Australian Government to introduce an inflation-indexed 10-year resilience program to enhance disaster mitigation efforts in the country.
The program would build on the $200 million annual disaster mitigation funding provided by the Albanese Government’s first budget. The ICA warns that it is essential to ensure that funding does not fall short over time due to inflation.
The submission also outlines nine policy areas that the government should prioritise to reduce premiums and risks for communities, including finalising a national standard for considering disaster and climate risk in land use planning, funding to support National Construction Code amendments to strengthen building resilience, and investment in a natural hazards database.
Read more here
Double whammy of weather systems could heighten bushfire risk – Insurance News
The Bureau of Meteorology warns that an El Nino and a positive Indian Ocean Dipole (IOD) could result in increased bushfire risk across parts of Australia. El Nino reduces rainfall in eastern Australia during winter and spring, while a positive IOD event suppresses winter and spring rainfall across the country.
The combination of the two weather systems can increase the frequency of high fire danger ratings and the risk of significant fire danger. The likelihood of an El Nino forming during winter is estimated at 50%, with a chance of 80% according to the US-based National Oceanic and Atmospheric Administration.
Read more here
If you’re interested in learning about hiring conditions in the industry, reach out to our insurance experts through the form on this page.
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