ICA annual report sets out year-ahead key priorities

Collaborating with industry and government to address availability and affordability of cover across all lines is one of the priorities for the year ahead, the Insurance Council of Australia (ICA) says in its annual report.

Supporting product development and enhancements is also key, with a focus on tort law reform to support provision of public liability and professional indemnity cover along with enhancements to personal injury insurance.

Emerging issues, such as cyber-risk and data rights, cost-of-living challenges and societal changes, are identified as priorities, along with enhanced data and ensuring regulatory reforms are fit for purpose.

Development of a comprehensive and best practice approach to fraud, resilience and mitigation in the built environment, best practice catastrophe management, effective industry self-regulation, reform of state-based insurance taxes and levies, accelerating the position on net zero and improved governance are also focus areas.

President Nick Hawkins says ICA reported an operating surplus of $1.236 million for the year ended December 31.

“This result can be attributed to position vacancies during the year due to staff turnover and competition for candidates,” he says. “Open positions continue to be an item into 2023.”

On the costs side of the ledger, expenses for events, travel and accommodation were higher with a return to in-person events.

Mr Hawkins says it’s more important than ever that ICA continues to focus its strategy and attention on the role of insurance in the economy and in climate.

“Maintaining our focus on these issues will enable our industry to continue to adapt and improve,” he says. “To fulfill the Insurance Council’s role as the voice for a more resilient Australia, our industry must take every opportunity to listen and learn so insurers can continue to better serve their customers when they need it most.”

The annual report shows the industry paid $36.5 billion in claims last year. In Queensland gross incurred claims of $3.54 billion outstripped gross earned premium of $2.72 billion, while in NSW claims of $4.53 billion topped $4.15 billion in premium, reflecting record flooding in both states.

There were two catastrophe and two significant event declarations last year, with one in five local government areas experiencing four major flooding events.

Catastrophe claims incurred totalled $6.95 billion, up 186%, the claims count rose 28% to 298,357 and the average claim increased 124% to $23,294.