insurers and bushfire mitigation
Financial Rights Chief Executive Officer Karen Cox said many of the recommendations in the Bushfires Royal Commission final report were important and encouraging.
“The Royal Commission has recognised the great challenges consumers face when it comes to the rising costs of insurance in Australia,” Ms Cox said.
“However, Ms Cox said that if Australia wants to assist our regional communities to thrive, we must address insurance affordability in bushfire prone areas.
The Royal Commission recommends that the insurance industry should produce and communicate to consumers clear guidance on individual-level natural hazard risk mitigation actions that insurers will recognise in setting insurance premiums.
“The lack of transparency in insurance premiums and the ability to challenge an insurer’s assessment of risk is a big concern for many consumers particularly people struggling in regional and rural areas,” Ms Cox said.
“Insurers must step up to the plate. Where mitigation work is done, insurers should commit to reducing their premiums.”
Ms Cox said unfortunately the Royal Commission also did not specifically address the need for the Australian Government to increase funding for mitigation projects as was recommended by the NSW Bushfire Inquiry.
“Financial Rights has advised many affected consumers,” Ms Cox said. “Those most likely to be suffering from affordability pressures are least likely to be able to afford to undertake the kinds of mitigation work that could decrease their insurance costs.
“We strongly believe governments must move quickly to introduce subsidies for homeowners to make their homes safer and more resilient, before the next bushfires begin,” Ms Cox said.
About Financial Rights
The Financial Rights Legal Centre is a community legal centre that specialises in helping consumers understand and enforce their financial rights, especially low income and otherwise marginalised or vulnerable consumers. We provide free and independent financial counselling, legal advice and representation to individuals about a broad range of financial issues. We operate the Insurance Law Service which provides advice nationally to consumers about insurance claims and debts to insurance companies. Financial Rights also operates the National Debt Helpline in NSW, assisting consumers experiencing financial difficulties. Financial Rights took over 25,000 calls for advice or assistance during the 2017/2018 financial year.
- National Debt Helpline 1800 007 007
- Insurance Law Service 1300 663 464
- Mob Strong Debt Help 1800 808 488
