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Insurance industry downplays talk of premiums spike

By Eric Tlozek, Friday February 8, 2013 - 14:13 EDT
ABC image
The southern Queensland city of Bundaberg in the grip of the January flood. - ABC

The Insurance Council of Australia says the industry will absorb the cost of the recent Queensland floods.

Many flood victims say they could not afford to reinsure after the 2011 floods and are worried premiums will rise after last month's flooding.

Campbell Fuller from the Insurance Council says the industry is unlikely to dramatically increase premiums this time.

"That was a confluence of events that led to more than $5.4 billion in insurance losses in just 12 months," he said.

"So that's an extraordinary thing for an industry to recover but in this instance, 2013, much of this has been anticipated and preparations are in place.

"Insurers had anticipated, with the help of the weather bureau of course, a season of higher than normal floods and also more cyclones crossing the coast.

"So they've made the appropriate commercial, prudential and logistical preparations for this summer."


© ABC 2013

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