ICA urges residents to photograpgh and document losses and list damaged items as insurers prioritise claims from hardest-hit east coast communities.
The Insurance Council of Australia (ICA) has urged policyholders to document losses thoroughly and lodge claims immediately to speed up the claims process.
Residents are advised to take photos, list damaged items, and record brand names, models, and serial numbers where possible. The ICA said detailed documentation would help insurers process claims efficiently, particularly in the hardest-hit areas.
In a statement released on March 7, ICA emphasised that claims can be lodged immediately, and insurers will have policy details on hand to assist customers.
Insurers to Prioritise Hardest-Hit Communities
Insurers have committed to prioritising claims from the most impacted communities along the east coast.
Although it is too early to determine the full extent of the damage, ICA CEO Andrew Hall expressed concerns about the potential scale of claims.
“The scale of this event highlights ongoing challenges that require collaboration between the government and insurers,” Hall said, citing key concerns such as supply chain disruptions, labour shortages, and limited temporary accommodation.
The ICA Board, which includes CEOs from Australia’s major insurers, announced on March 7 that it has been in continuous discussions with the federal government to ensure adequate customer support.
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The ICA has also briefed Assistant Treasurer Stephen Jones on the industry’s response measures, particularly in managing claims efficiently and addressing financial gaps in coverage.
Insurance Coverage and Flood Risks
The ICA has reiterated that most standard home and contents insurance policies in Australia cover cyclone damage.
However, policyholders are encouraged to review their coverage details with insurers or check their product disclosure statements for clarity.
According to ICA data, 1.36 million properties nationwide face some level of flood risk, with 298,000 properties—including 225,000 homes and 73,000 businesses—classified as high-risk.
Despite this, financial protection remains limited.
Approximately 70 percent of households in the highest flood-risk areas are in locations where the median income is below the national average of $92,000. Further, only 23 percent of homes in these high-risk zones have flood insurance.
Insurance Embargoes and Claims Processing
With ex-Tropical Cyclone Alfred leaving flooding, storms, and high-speed winds in its wake, insurers in southeast Queensland and northern New South Wales have imposed embargoes on new policies, preventing last-minute insurance purchases ahead of the storm.
These restrictions also apply to modifications of existing policies.
However, some insurers offer policies with a waiting period for pending risks, meaning customers may still be covered for unrelated incidents such as accidental fires or theft.
Policyholders are advised to confirm their eligibility and coverage details with their insurers to avoid unexpected gaps in protection.
Government Warnings and Assurance
Federal Treasurer Jim Chalmers has warned that the weather event could impact as many as 4.5 million people, including an estimated 1.8 million homes.
“We expect there will be billions of dollars of damage,” Chalmers stated, urging residents to take necessary precautions before landfall.
The government assured that it has been in direct discussions with insurance industry leaders to ensure claims are processed swiftly.
“They gave me an assurance that they’re doing everything they can to stand up a big team of people to process those claims,” Chalmers said.
