In Australia, insurance industry professionals have pointed to extreme weather events, inflation, skyrocketing reinsurance costs, and state insurance taxes as key factors driving up premiums. Andrew Hall, CEO of the Insurance Council of Australia, stated in a recent program that stakeholders must work together to alleviate the pressure on customers. However, he emphasized that claims suggesting price hikes are unfair or that the insurance industry is solely profit-driven are incorrect.
Hall acknowledged that while insurance is available across Australia, pricing remains a significant challenge. He urged the industry to collaborate with the government, banks, and other organizations to develop fair, transparent, and sound plans for properties with the highest risks.
Underinsurance is becoming a major issue for customers, according to Hall. He stressed the need for the insurance industry to raise awareness about the high costs of rebuilding properties in the event of the worst-case scenarios.
Responding to criticism from political leaders, Hall stated that the focus should be on managing risks rather than accusing the industry of price gouging. He pointed out that building more homes in flood-prone areas without improving building standards or rebuilding homes in such areas while hoping the situation won’t recur is not a solution for the insurance industry.
Related Topics:
Petsy Strengthens Pet Insurance Partnership with Costco Australia
