QBE makes Flood Cover Mandatory!!! Published: insuranceNEWS.au. 23 September 2013 QBE is to include flood cover as standard in home and contents policies from December, with no option to opt out. It says benefits include peace of mind for policyholders and fewer delays in claims settlement. Flood cover has been “a source of confusion and anxiety for many Australians” and those most in need often have inappropriate protection, a spokesman told insuranceNEWS.au. “By providing flood cover as standard, we are working to minimise the risk of our customers finding themselves without adequate cover.” QBE will use its own modelling and the Insurance Council of Australia’s National Flood Information Database (NFID) to rate risks at individual property level. It will reject new business in areas of extreme flood risk; renewal business will be offered, but with significantly higher premiums. People in high or very high-risk areas can also expect increases, while those in zero to negligible-risk areas will see little impact. Increased reinsurance costs arising from catastrophic events may also affect premiums. QBE will give intermediaries lists of addresses it cannot validate, warning higher premiums could be charged if corrections are not made. The spokesman says the company “supports and recognises” government and insurance industry efforts to manage flood risk in Australia. “We believe it is extremely important to maintain the focus and momentum on initiatives such as the development of the NFID, the mapping of accurate flood data and the advancement of flood mitigation measures, all of which are critical in assisting us to develop insurance products that are accessible and as affordable as possible for consumers, given the nature of the risk involved.” The changes to QBE policies will be effective from December 14.
Posted on: Wed, 25 Sep 2013 04:15:03 +0000
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