30 March 2020

Claims, assessment and repair services are continuing but insurance customers should expect delays as the industry struggles under the dual weight of the COVID-19 pandemic and billions of dollars in claims from the summer catastrophes, the Insurance Council of Australia (ICA) says.

Claims settlements and the sales and renewals of most products, along with most back-office functions, are ongoing, although overseas call centres have mostly been shut down by local authorities.

That means Australian staff are taking on this extra load, usually working from home, so call delays may be longer than normal.

“It is inevitable many customers will experience delays and interruptions,” ICA spokesman Campbell Fuller said.

“This is not business as usual. Far from it. COVID-19 is having a dramatic impact on the operations of most businesses due to social distancing and shutdown rules.”

He says insurers are committed to helping their customers through the COVID-19 pandemic, but government measures aimed at stalling the spread of the disease are having a dramatic impact on the operations of many businesses, including insurance firms.

It comes at a time insurers and brokers are already under an “extraordinary burden” from more than 252,000 claims worth $4.6 billion following the summer natural disasters.

Mr Fuller says ICA has welcomed general insurance being classified an “essential service” during the COVID-19 crisis and is seeking further clarity from the federal, state and territory governments on essential services arrangements.

For example, ICA wants to know whether insurance workers are able to cross state borders without having to enter isolation.

Insurance is not listed as a restricted activity or business, so insurers can continue to provide services and support to Australians. Most insurance business operations and urgent services will remain available during shutdowns, even if restrictions on the community are toughened.

ICA says its members are seeking to help SME and household customers on an individual basis, especially those experiencing hardship.

Repair and rebuilding work on properties that have been damaged or destroyed over spring and summer is mostly continuing, although some builders are no longer available and supplies of some building and motor vehicle materials are scarce due to disruption in China.

If shutdown measures are ramped up, insurers still expect emergency building repairs to continue. Motor vehicle claims and repairs, and other assistance, should be maintained for vulnerable Australians and for those involved in delivering critical services during the pandemic, ICA says.

How you can help with the bushfire recovery process

Our hearts go out to all the communities that have suffered and continue to suffer from the bushfire crisis that has been going on since early September. In particular, we pause to think about the tragic loss of life and those who have lost property and businesses. They remain constantly in our prayers.

Whilst fires continue to burn in many areas, large parts of the communities are now starting their recovery phase and the federal government and various state governments have all promised significant funds to help the recovery process.

Aside from the mental health and anguish that these fires caused, the Property recovery process will be long and expensive. Whilst insurance losses are currently estimated in excess of $1 billion, we believe this will more than double over the next couple of months. In addition, there will be at least as much property damage that is uninsured that still needs to be rebuilt or repaired as well.

However money alone won’t help these communities. They need “boots on the ground” and this is where the clients of Action Insurance Brokers may be able to help. For any of you who are involved in building or construction, civil engineering, land clearing or any of the trades that work within these fields, you can register to offer to provide work in these bushfire affected areas.

The Insurance Council of Australia has a disaster recovery database for all trades who are interested in providing business services. This register is not necessarily for volunteers but is for businesses who can help with the rebuilding process and charge for their services. Follow the link below if you are interested in registering your business: -

https://disasters.org.au/trades-register

Governments, insurers and all relevant stakeholders have access to this database and can locate you and seek your assistance in the rebuilding process.

Action Insurance Brokers will continue to provide whatever support it can to affected parties and we support this initiative from the Insurance Council of Australia.