2022 Floods
2022 flood now third costliest natural disaster ever
![NSW-Northern-Rivers-Breaking-News](https://thenorthernriverstimes.com.au/wp-content/uploads/2024/03/NSW-Northern-Rivers-Breaking-News.jpg?v=1710983406)
2022 flood now third costliest natural disaster ever
New data shows that the destructive flood that swept through South-East Queensland and Northern New
South Wales in late February and early March has caused $4.8 billion in insured damages and is now
the third costliest extreme weather event in Australia’s history.
Only Cyclone Tracy (1974) and the Sydney hailstorm (1999) caused more insured losses, and this year’s
East Coast Flood is the costliest flood in Australian history, the Insurance Council of Australia (ICA) said
today.
Close to 225,000 insurance claims relating to the event have been lodged across both states, an
increase of 3.6 per cent on last month’s count.
However, as claims assessments continue to be completed, insurance costs for the event have
increased 12 per cent on last month, driven in part by increasing materials and labour costs.
Almost 30 per cent of claims have been closed and $1.5 billion has already been paid to policyholders.
With almost 125,000 home claims stemming from the 2022 East Coast Floods, local councils need to be
preparing for an influx of development applications for the very large number of property rebuilds and
repairs required.
This week marked four months since the ICA declared the event an Insurance Catastrophe.
The event stretched over several days and many claims were not made until days, weeks or months
after the initial event, with locations like Lismore being hit for a second time at the end of March,
generating many new or additional claim lodgements.
The four-month mark is significant because under the General Insurance Code of Practice insurers are
required to make a decision on a claim four months after it is lodged.
However, the Code allows for changes to timeframes where they cannot be practically met, for example
due to the complexity of the claim or delays in expert reports, such as hydrology and engineer reports.
The ICA has been holding community forums in impacted towns and cities throughout June, which has
enabled insurance customers to meet directly with their insurer.
Quote attributable to Andrew Hall, CEO, Insurance Council of Australia:
The sheer scale of the extreme weather event that devastated Queensland and New South
Wales is something we have never seen before, and the cost continues to rise.
Money is flowing into these devasted communities with $1.5 billion already paid and this number
increasing every day.
Insurers are working hard to resolve claims as quickly as possible and have put on hundreds of
extra staff to support claims processing as delays not only impact the policyholder, in most cases
they also add costs to the insurer.
Media: 0432 121 116 comms@insurancecouncil.com.au insurancecouncil.com.au
Past experience has shown us that local councils need to be looking at what they can do to
process the higher than usual number of development applications we expect to see as a result
of this flood.
The time it takes for some property claims decisions to be made has been a consistent issue
raised at our policyholder forums in New South Wales and Queensland.
There are clear obligations and regulations on insurers around claims, but ultimately the type of
claim, the assessment required and the complexity of the repair or rebuild can impact that
process.
Timeframes stipulated in the Code:
• Insures are obligated provide an update at least every 20 business days after a claim has been
submitted.
• A routine enquiry must be responded to within 10 business days.
• Insurers are required to make a decision on a claim within four months of lodgement.
• Changes to timeframes are permitted where they cannot be practically met.
2022 Floods
Resilient Lismore Urges Flood-Affected Residents to Access Repair to Return Project
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2022 Floods
$928,350 GRANT AWARDED TO CLEAN REMAINING FLOOD WASTE
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2022 Floods
Door Knock Survey in Flood Zone Your story is important
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2022 Floods
$300,000 funding agreement to help deliver flood resilient land in the Byron Shire
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2022 Floods
Lismore’s Damaged Structures Demolished for New Facilities
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