ARTICLE · 01 MARCH 2014

Rising waters place pressures on insurers in claims emanating from natural disasters

Norton Rose Fulbright Australia

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The industry must accommodate a higher volume of claims and provide greater clarity to consumers on the scope of cover.

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Introduction

Australia has long been regarded as a beautiful and untamed land. Severe geographical and climatic events such as bushfires, floods, earthquakes, cyclones and hail have increased in frequency and severity and may one day become the norm. With this rise in natural disasters, the Australian insurance industry has been forced to adapt, not only to accommodate the high volume of claims, but also to provide greater clarity to consumers on the scope of cover with respect to flood events.
This article:

highlights how natural disasters can place a strain on insurers;
focuses on the key difficulties associated with flood cover; and
outlines the Federal Government and Insurance Council of Australia's response to these issues.

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