Now is time to protect future generations
Date Published: 2011/05/31, 13:51:34
The following article was reported by www.insurancenewsaustralia.com.au on 31 MAY 2011
AUSTRALIAN GOVERNMENTS and the general insurance industry have been called on to do what they can now to protect future generations from the devastation of natural disasters.
All levels of government must act and the industry must be more open with consumers – especially those affected by disasters such as the recent floods.
Rob Scott, managing director of Wesfarmers Insurance addressing the Australian Insurance Summit in Sydney today said that after the devastating events of the summer: “Now is a unique opportunity to take action to protect future generations and demonstrate the value that the insurance industry provides to the Australian economy.
“As an industry we need to do a better job of telling our story, educating consumers and influencing the policy debate that is underway.
“We will have greater influence in the policy debate as we build trust and respect among our key stakeholders, the media and with the community at large.”
Mr Scott was speaking before John Trowbridge was expected to release his Natural Disaster Insurance Review which was created by government to probe disasters, relief and mitigation.
But he noted that when the Review was released by COAG’s some months ago, “There are 8957 words in this report and the word ‘insurance’ is mentioned 5 times.”
Never was there a more important time to invest in the future protection of Australians.
Apart from governments’ action, “It is not appropriate for us as an industry to sit on the sidelines, attribute blame and wait for government to act.
“This is our problem and we must do what we can do to influence the debate and help deliver better outcomes to our customers,” he told senior insurance executives at the Summit.
“At the minimum, there should be reforms to arrive at a common definition for flood insurance and a commitment from (Federal) Government to make available flood mapping data from local councils so that consumers and insurers can better understand and price the risks.
“It would be a serious concern if the industry was required to provide mandatory flood cover without an appropriate response from government in the areas of detailed flood mapping and improved land use planning and building codes.”
This could lead to the exit of a number of insurers from the home and contents market, reduce competition and increase costs, Mr Scott warned.
For insurance, he added: “As an industry, we need to work together to influence the public debate and tap into the pride and support of the tens of thousands of proud insurance employees that are genuinely interested in doing the right thing by clients.
“In this process, we must demonstrate empathy and compassion, which should be easy because we demonstrate this every day.
“When the next natural disaster strikes, history will judge our elected officials and our industry on how we responded to the events of 2011.”
