APRA’s quarterly review for June 2020 has just been published, so we thought it might be a good a time to summarise and share the findings.
APRA’s quarterly review for Q4FY2020 has just been published, so we thought now was as good a time as any to stop, take a minute, and reflect on the past fin-year. We’ve summarised those findings and we’re excited to share them with you – Aussie Insurance Builders, who play such a vital role in delivering on-the-ground claims fulfilment. So happy reading and we hope you gain a wider lens on the insurance industry.
Research from APRA and the InsuranceCouncil of Australia (ICA) confirms, what I think we all know, that it’s been a turbulent time for Insurance Builders, Supervisors and Trades on the frontline, operating in extreme weather environments. And whilst most make-safes and many callouts are ‘sudden’ and ‘unexpected’, the urgent work you do has been further complicated by COVID-19.
Many of you operating in this new COVID-19 environment, especially in Victoria, feel the new safety risks and have had to overcome the logistical challenges while complying with lockdown rules - adopting new social distancing and safety protocols to continue your work and help customers and communities across Australia get back to doing life. If you are looking a solution that allows inspections to be completed remotely, via a video call between your Building Inspector and the policyholder– then please do reach to us. We can have you up and running in a nano second.
Some quick stats as promised - Gross incurred claims for Household/Homeowners risks located in Australia have increased from $6.388 Billion in June 2019 to $8.549 Billion in June 2020.That's a 34% increase! Undoubtedly, the most significant contributing factor to this overall increase in insurance claims has been Australia’s extreme weather events. And from a big picture perspective we know from the ICA that insurance losses resulting from declared catastrophe events over the past two decades has totalled a whopping $24 billion or so.
We know from EnsureFlow’s data and APRA’s review that AussieInsurance builders worked tirelessly through last summer’s catastrophes to repair and restore damaged homes, and with it, lives. According to the ICA, the industry received over 115,000 residential building claims from four differentCatastrophes i.e. the November hailstorms, Dec-Jan bushfires, January hailstorms, February East Coast floods. This is reflected in the APRA data revealing big variations in Claims across Australia in FY20: NSW (+69%); VIC(+38); QLD(-16%); SA (+38%); WA (+42%), TAS (+16%); ACT(+395%); and NT (-32%).
There’s no telling what the final months of 2020 will have in store for Aussie Insurance Builders, and the industry as a whole, but we’ll continue to bring you the latest. And in the meantime, keep doing the great work that you’re doing.