Federal MP Kevin Hogan is disappointed the inquiry into how insurers dealt with flood claims has resulted in more red tape.

The Federal Government has released its final report and recommendations for the inquiry into insurers’ responses to 2022 major flood claims.

Mr Hogan said the recommendations result in more government intervention and are ignorant of mitigation and flood insurance affordability.

“I have already co-signed a dissenting report outlining concerns on affordability, mitigation and regulation,” Mr Hogan said.

“We have put forward additional recommendations to be considered, including an option for policyholders to opt out of flood coverage while maintaining general insurance.

“This is essential for our community. If you live on the floodplain and want to opt out due to the cost, this will ensure you are still covered for fire and theft protection.”

Mr Hogan wants performance data on insurance companies made public. For instance, how long companies take to assess claims and resolve disputes?

“If this data is then made public, I think the industry would change their behaviours quite quickly because they would be almost publicly shamed,” Mr Hogan said.

“Governments also need to seriously address the imbalance in disaster funding, where 97 per cent is currently allocated to response and recovery, and only 3 per cent to mitigation.”

The positives of the report according to Mr Hogan include simplifying flood data and communicating flood risk to communities.

The full report is available here.

The information in this report was provided by Kevin Hogan’s office.

This article appeared on indyNR.com on 18 October 2024.