Cyclone Resilience Funding: Generally, insurance is all about protection—protection against the financial effects of the pandemic. Health insurance, travel insurance, workers’ compensation, business interruption insurance, life insurance, paid sick leaves, disability, hospital indemnity etc. are all types of insurance policies that offer relevant protection.
Surprisingly, one of the coronavirus outcomes has been a significant increase in clients contacting their insurance companies; and all for good reasons and Queensland has taken note.
The State government of Queensland has unveiled additional funding poised to prolong a grants program that assists in improving the resilience of houses and reduce premiums paid by residents living in cyclone-prone regions.
Saving On Household Insurance Premiums
According to Premier Annastacia Palaszczuk, the Household Resilience Program has so far been successful in delivering local jobs and helping residents to save on their household insurance premiums.
“We are extending this program with another $11.25 million, and I welcome the Federal Government’s commitment to provide $10 million of funding,” she noted today.
The Queensland government revealed that 1749 households from Bundaberg all the way to Cape York Peninsula have recorded a reduction in their insurance premiums by an average of $310, thanks to the program.
Head of Risk and Operations at the Insurance Council of Australia (ICA) Mr Karl Sullivan welcomed the supplementary commitment for a program that insurance companies consider as highly essential.
“While modest in size for now compared to the scale of the problem, the program is a practical and meaningful step towards helping vulnerable individuals to improve their resilience to cyclones,” he noted on LinkedIn.
Notably, most insurers have shown willingness to identify improvements that could possibly mitigate the risk of cyclones and eventually reduce insurance premiums.
Protecting The North
In a statement, the CEO of Suncorp Insurance Gary Dransfield said the Household Resilience Program was based on the insurer’s research on Protecting the North carried out in conjunction with the Cyclone Testing Station at James Cook University.
“Effective investment in economic infrastructure that reduces the impact of natural disasters will help create regional jobs while building safer communities and reducing cost of living pressures through lower insurance premiums,” he said.
Mr Dransfield further claimed that the program complemented the company’s Cyclone Resilience Benefit which offers insurance premium reductions of up to 20% to customers within the region for ensuring that their homes were more resilient to cyclones.
The program extension forms part of Queensland’s economic recovery strategy put in place to respond to the continuing effects of the Covid-19 pandemic.
Australia has recorded a substantial drop in growth expectations considering that the entire business sector and consequently the economy at large have been impacted by the coronavirus pandemic.
At this juncture, we cannot sugarcoat the level of concerns raised out there in the insurance industry regarding the impact of the ongoing pandemic to the sector.
The insurance sector has been uniquely affected by the pandemic and it’s time for the ICA and the insurance industry stakeholders to shape up to evolve with the times as the epidemic unfolds.
From general insurance to life insurance segments of the industry, the implications of the pandemic can be felt and hence there are long-term trends that the outbreak might serve that could be the new norm into the future. Are you prepared?
Keep it logged at Storm Assist for more fresh and exciting news on the latest in the insurance industry.