The Insurance Council of Australia (ICA) has declared a Significant Event in response to severe bushfires burning across Victoria since January 7, activating its early catastrophe processes as the situation continues to unfold. The ICA said the event could be escalated to an Insurance Catastrophe if there is a significant increase in claim numbers.
“While it’s too early to estimate the total damage bill of these fires, insurers stand ready to assist impacted policyholders in their recovery,” said Liam Walter, ICA director of mitigation and extreme weather response.
The declaration, made on Sunday, enables the ICA and insurers to collect and analyse claims data and to closely monitor the insurance impact of the fires across affected regions. Under a Significant Event declaration, the ICA begins its claims data collection, analysis and reporting in consultation with member insurers and coordinates with government and emergency agencies to understand the impacts on communities and ensure assistance is available to residents.
“The ICA is in close and ongoing conversation with local response agencies,” said Walter.
The ICA media release said the bushfire emergency is ongoing and that insurers’ overriding priority is the safety of communities in the path of the fires. “Insurers’ first priority is community safety and we strongly encourage all Victorians to follow the advice of emergency services,” said Walter.
Residents whose homes or properties have been impacted are being urged to contact their insurer as soon as it is safe to do so and to commence the claims process, even if they are not yet sure of the full extent of the damage. Insurers will look to deploy claims teams to the affected regions once the immediate emergency has passed and authorities deem it safe to enter.
Information for impacted policyholders, including guidance on the claims process, is available on the ICA website.
