Consultation Opens for Standardizing Definitions and Standard Cover for Insurance

laptop, conference table, mouse-7978588.jpg

Original media release from The Hon Stephen Jones MP, Assistant Treasurer and Minister for Financial Services (7/03/2024). Consultation available here.

The Albanese Government is working to improve insurance affordability as more severe weather events contribute to higher costs. As these events intensify and become more frequent, it’s also important consumers know exactly what they are covered for.

When disaster hits, consumers need to be confident the policy they buy meets their needs and expectations. No one wants to be surprised at claims time.

That is why the Albanese Government is releasing a consultation paper on standardising natural hazard definitions and reviewing standard cover for insurance contracts.

Currently, the only standardised natural hazard definition is flood. Fire, storm, and rainwater run?off definitions are not standardised, which can cause confusion about what people are and are not covered for.

This initiative forms part of a broader package of reforms to improve insurance affordability and resilience to natural hazards.

The paper seeks feedback on natural hazard terms that should be standardised and potential reform options for the standard cover regime in the Insurance Contracts Act 1984.

The government encourages all interested parties to make a submission in response to the consultation paper, which can be found on the Treasury website.

The consultation process and any comments received in relation to this paper will help inform the development of future policy in this area.

Submissions will close on 4 April 2024.