Liability Insurance Australia :: News
SHARE

Share this news item!

Insurers Under Scrutiny for Response to Alfred Flood Claims

Insurers Under Scrutiny for Response to Alfred Flood Claims

Insurers Under Scrutiny for Response to Alfred Flood Claims?w=400

The information on this website is general in nature and does not take into account your objectives, financial situation, or needs. Consider seeking personal advice from a licensed adviser before acting on any information.

In a recent development, Queensland MP David Lee has raised concerns about how insurance companies are addressing claims following the devastating floods caused by Ex-Tropical Cyclone Alfred.
Businesses in Hervey Bay, a region heavily impacted by the floods, report facing significant hurdles in having their damage claims recognized.

Speaking before an upcoming Insurance Council of Australia (ICA) meeting set to address policyholder issues, Mr. Lee highlighted widespread dissatisfaction among flood-affected businesses regarding their insurance claims. According to him, while some insurers have been proactive, others are rapidly dismissing any responsibility for flood-induced damage.

Mr. Lee shared insights based on data from the state's business disaster recovery initiative. He noted a growing trend where business owners are struggling with insurance complications as they strive to recover from the calamity that hit in March. He criticized certain insurers for demanding exhaustive hydrology reports from already distressed clients and called for more efficient resolutions to these pressing claims.

Emphasizing his point, he recounted the ordeal of a local butcher whose shop faced significant damage estimated at more than $300,000. Despite having paid insurance premiums for nearly two decades, the business owner now finds himself in dire financial straits, having to cover employee wages from his depleting savings, without any incoming revenue.

According to the ICA, insurers have processed over 100,000 claims amounting to nearly $1 billion due to Alfred's impact. Hervey Bay, particularly, suffered severe consequences, leading the ICA to label the incident a catastrophe. They plan to hold a meeting in Hervey Bay on May 15 to address ongoing concerns.

Liam Walter, ICA's director of mitigation and extreme weather response, emphasized the importance of direct engagement in Hervey Bay. The council aims to ensure comprehensive support and resolution for those affected, with expectations that assessments and discussions around rebuilding are well underway by now.

Published:Monday, 5th May 2025
Author: Paige Estritori

Please Note: We do not endorse any specific products or companies. Some content is sourced from third parties, including press releases, and may not be independently verified for accuracy or completeness.

Share this news item:

Insurance News

Surge in Insurance Complaints Highlights Processing Delays
Surge in Insurance Complaints Highlights Processing Delays
21 Apr 2026: Paige Estritori
Recent data from the Australian Financial Complaints Authority (AFCA) reveals a significant increase in consumer complaints against insurance companies, reaching an unprecedented average of 100 complaints per day. This surge is primarily attributed to delays in processing routine claims, rather than issues stemming from natural disasters. - read more
Cyber Threats Expose Gaps in Australian Insurers' Preparedness
Cyber Threats Expose Gaps in Australian Insurers' Preparedness
21 Apr 2026: Paige Estritori
The latest PwC Insurance Banana Skins Survey highlights a concerning trend: Australian insurers are trailing their global counterparts in preparedness for emerging risks, particularly in the realms of cyber threats and artificial intelligence (AI). This gap raises questions about the industry's resilience and its ability to adapt to rapidly evolving technological challenges. - read more
Market Concentration in Australian Insurance: A Double-Edged Sword
Market Concentration in Australian Insurance: A Double-Edged Sword
21 Apr 2026: Paige Estritori
Australia's general insurance market is notably concentrated, with four major companies-Insurance Australia Group (IAG), Suncorp, QBE, and Allianz-controlling approximately 74% of the market. This dominance has sparked discussions about the potential implications for competition and consumer outcomes. - read more
Life Insurers Advocate for Updated Code of Practice
Life Insurers Advocate for Updated Code of Practice
21 Apr 2026: Paige Estritori
The Australian life insurance industry is actively supporting revisions to the Life Insurance Code of Practice, aiming to align with evolving regulatory requirements and consumer expectations. This initiative underscores the sector's commitment to maintaining trust and relevance in a dynamic environment. - read more
AIA Australia Highlights Need for Industry Adaptation
AIA Australia Highlights Need for Industry Adaptation
21 Apr 2026: Paige Estritori
AIA Australia has raised concerns about impending structural changes in the life insurance sector, driven by increasing mental health claims and economic volatility. CEO Damien Mu emphasized the necessity for the industry to adapt to these evolving challenges to ensure sustainability. - read more


Business Insurance Articles

Public Liability Insurance Claims: What to Expect and How to Prepare
Public Liability Insurance Claims: What to Expect and How to Prepare
Public liability insurance is a type of insurance policy that provides coverage for businesses and individuals against claims made by third parties for injuries or damages sustained while on their property or as a result of their activities. - read more
Decoding Public Liability Insurance: Is It a Must-Have for Your Australian Startup?
Decoding Public Liability Insurance: Is It a Must-Have for Your Australian Startup?
Public liability insurance is an integral safety net designed to protect businesses from the financial risks associated with lawsuits or claims. It provides coverage when a business is found legally responsible for personal injury to a third party or damage to their property. This form of insurance can significantly reduce the burden of legal fees, compensation claims, and other associated costs that may arise from unforeseen incidents. - read more
The Smart Business Approach: How to Effectively Compare Public Liability Insurance Rates
The Smart Business Approach: How to Effectively Compare Public Liability Insurance Rates
Running a business comes with inherent financial risks. Whether you own a small café or a large construction company, unforeseen incidents can lead to significant financial losses. - read more
Understanding Liability Insurance: A Must-Read for Australian Business Owners
Understanding Liability Insurance: A Must-Read for Australian Business Owners
As a business owner in Australia, navigating the complexities of insurance is crucial to safeguard your enterprise against unforeseen events. Liability insurance emerges as a cornerstone of a sound risk management plan, protecting you financially when held responsible for accidents, injuries or negligence. Its importance cannot be understated, as it serves not only to defend your business assets but also to ensure peace of mind in a climate of continually evolving liabilities. - read more
Proven Strategies for Slashing Your Business Liability Insurance Costs
Proven Strategies for Slashing Your Business Liability Insurance Costs
Welcome to our comprehensive guide on public liability insurance, an essential safeguard for businesses across Australia. Navigating the complexities of liability insurance can be a daunting task for many business owners, but it’s a critical component of your business protection plan. If incidents such as accidents or property damage occur, liability insurance is the barrier that stands between your business and financial calamity. - read more


Start Here !

Start here!

Cover Amount:
Postcode:
All quotes are provided obligation-free by a participating broker from our national referral partner network. We respect your Privacy.

Knowledgebase
Liability Insurance:
A type of insurance that provides protection against claims resulting from injuries and damage to people and/or property.