The Minister for Financial Services and Superannuation today welcomed new data by the Insurance Council of Australia, which shows 78.1 per cent of home and contents insurance policies contained flood insurance.
“This data shows that the number of policies which include flood insurance has increased significantly in recent years, from only 3 per cent in 2006 to an estimated 78.1 per cent today” Mr Shorten said.
“The publication of the flood insurance take-up-rates build on the Gillard Government’s continuing efforts to make flood insurance simpler and more transparent through reforms such as standard definition of flood and the Key Fact Sheet regulations.”
“The increasing take-up of flood cover is a sign that consumers are better informed about the availability of flood cover than ever before.”
After the devastating floods in 2010, the Government asked the Insurance Council of Australia to publish data on flood insurance take-up rates, on a state by state basis, setting out the number of policies that include flood cover.
The data shows that while most insurers are offering flood cover as a standard policy inclusion, there are a number of insurers who allow consumers to opt-out, and some insurers that offer policies with no flood cover.
“The data also shows that flood insurance is now accessible for all homeowners in Australia, either as standard or on an opt-out basis, and the proportion of consumers who choose to purchase home insurance policies that include flood cover continues to increase,” Mr Shorten said.
“The release of this data is a timely reminder that households need to assess their risks and examine their insurance needs, particularly now that we are coming into the wet season. People can and should shop around for the best deal,” Mr Shorten said.
People who wish to find out more information about which insurers offer flood cover can find it at the Insurance Council’s ‘Find An Insurer website’: www.findaninsurer.com.au
The data is available for viewing on the Insurance Council of Australia’s website at http://www.insurancecouncil.com.au/industry-statistics-data/flood-cover
The data will be collected and published each quarter.