The Australian government has announced that meeting its own recommendations for disaster insurance in the wake of the floods in Queensland early last year. The floods that hit the region last year cost thousands of people their homes and put an end to several businesses. There are still scores of people struggling to rebuild, nearly a year after the catastrophe. When flood waters came in, the nation’s insurers were quickly overwhelmed in terms of claims and insured losses. The government had to step in, but it too struggled to mitigate…
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Australia Flood Insurance News: Local councils fear cost shifting for flood insurance
Australian local government has brought cost shifting to the surface once more as it looks like the federal government’s flood insurance costs will be sent to local councils. Though cities such as Canberra have supported local government decisions to remove state government cost shifting, the Australian Local Government Association (ALGA) has voiced its concerns regarding indications that the federal government is now considering putting the weight of flood risk insurance and carbon tax on local government shoulders. The ALGA has already been speaking out about its worries regarding the likely…
Read MoreSuncorp reveals how much they paid on Australia and New Zealand disasters this year
Earlier this year, Australia and New Zealand faced an onslaught of natural disasters that put strain on the two nation’s top insurer: Suncorp. Several estimates have been made as to how much the disasters cost the company, but Suncorp had not released any official statement regarding the issue. Yesterday, however, their silence was broken as the company hopes to improve its relationship with several reinsurance company in an effort to increase its profits for the 2011-12 fiscal year. According to Suncorp, the two devastating earthquakes that rocked New Zealand –…
Read MoreForced place insurance for businesses in Austrailia
In light of the recent disasters befalling the nation, the Australian government may be setting up an inquiry to determine whether states should be forced to purchase commercial insurance policies to cover natural disasters. Legislators are currently pushing to pass a $1.8 billion deal that would help reconstruct levees. The possibility of an inquiry was raised when Treasurer Wayne Swan suggested that there “legitimate questions” about what states had done regarding insurance. Swan said that “it is probably timely for us to evaluate all of those questions, to have a…
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