December - 2018

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Lawyers invite more councils to join JLT class action

Law firm Quinn Emanuel Urquhart & Sullivan has invited more councils to join a class action it filed last week against JLT. The NSW Supreme Court action, supported by litigation funder Harbour, is led by Richmond Valley Council, while the law firm says six other local governments have also expressed interest. But JLT says it will “vigorously defend” the action, which is open to councils provided with broking services from January 1 2009 to December 3 this year and which obt

Where the money went: The 10 biggest causes of claims

Aviation-related claims are the biggest driver of insured losses in Australia, according to an Allianz Global Corporate & Specialty (AGCS) annual report released yesterday. They make up 32% of the €1.6 billion ($2.5 billion) of claims paid by the industry over a five-year period from July 2013 to this year. Events under this category include damage caused by collisions or crashes, faulty maintenance, travel issues, ground-handling incidents, over and under-shooting runways,

Insurance claims surge to $9 billion for California wildfires

Insurance claims from last month’s California wildfires already are at $9 billion and expected to increase, the state’s insurance commissioner announced Wednesday. About $7 billion in claims are from the Camp Fire that destroyed the Northern California city of Paradise and killed at least 86 people, making it the deadliest US wildfire in at least a century. The rest is from the Woolsey and Hill fires in Southern California. Collectively, the fires destroyed or damaged more

Hayne fallout: NIBA worries brokers could take a hit

The National Insurance Brokers Association (NIBA) is worried that brokers could be caught up in the Hayne royal commission’s final report detailing ways to reform the financial services sector. CEO Dallas Booth says NIBA has already been in touch with the Australian Securities and Investments Commission (ASIC) and other relevant government and regulatory bodies to make a case for brokers ahead of the report’s expected release in February. “Insurance broking has not been men

No confidence: ASIC slams complaints process

Financial services providers, including general insurers, must improve complaints handling after the Australian Securities and Investments Commission (ASIC) highlighted problems with internal dispute resolution (IDR) processes. Several obstacles stand in the way of consumers when they try to raise a complaint, ASIC-commissioned research found, and their experiences have marred their confidence in the system. Fewer than half of complainants who had an unfavourable outcome re

NSW Treasurer hits back after workers' comp criticism

NSW Treasurer Dominic Perrottet has defended the state’s reformed workers’ compensation scheme following criticism from businesses. The NSW Business Chamber last week called on Mr Perrottet to commission an urgent review of the system following employer complaints about poor practices since the reforms were introduced. But today a spokesman for Mr Perrottet told insuranceNEWS.com.au the changes had brought huge improvements. The old scheme “was failing injured workers, was

Not working: NSW businesses call for workers' comp review

The NSW Business Chamber has called on the Treasurer to commission an urgent review of the state’s workers' compensation system following employer complaints about poor practices since reforms were introduced. “The 2015 reform of the workers' compensation system in NSW was necessary, however the administration of this reform has left a lot to be desired,” chamber CEO Stephen Cartwright said. “We have reports of claims being approved without appropriate checks or investigati

Lives at risk: Committee demands urgent action on dodgy building products

A plague of dodgy building products is increasingly putting lives at risk and forcing up insurance premiums, a Senate inquiry report warns. The Economics References Committee published its final report into non-conforming building products late yesterday. The committee had already released interim reports focusing on two of the most serious issues – imported materials containing asbestos and flammable building cladding. The final report also addresses concerns with non-con

Angry insurers say Fels has stepped over line

The Insurance Council of Australia (ICA) has made an official complaint against NSW Emergency Services Levy Insurance Monitor Allan Fels, accusing him of stepping outside his remit and failing to listen to industry concerns. Professor Fels was engaged by the NSW Government to monitor insurance pricing after the removal of the emergency services levy on insurance – something that never happened following a last-minute deferral. Despite the reform’s delay, Professor Fels has

Sydney storm claims climbing, but Queensland firefighters keep losses low

Insurance losses from the torrential rainfall that hit Sydney this week have risen to $13.5 million, while only a handful of claims have been received as a result of more than 100 fires in Queensland. The Queensland fires are continuing to burn, and insurers are monitoring high-risk weather conditions that are forecast to arrive in the next few days. The Insurance Council of Australia says about 2750 claims have been lodged from the Sydney storm, which caused flooding, powe

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