GENERAL INSURANCE INDUSTRY CATASTROPHE … · escalation path for community issues. Data Sharing & Decision Support ... claim or associated recovery issues can typically be resolved

Insurance Council Catastrophe Hotline 1800 734 621 12 March 2012

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GENERAL INSURANCE INDUSTRY

CATASTROPHE COORDINATION ARRANGEMENTS

Version 4.1 12 MARCH 2012


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SUMMARY OF THE CATASTROPHE COORDINATION ARRANGEMENTS

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Event & Assessment If an event occurs that has a significant impact upon an insured community or claims implication (potential) it will be assessed by the Insurance Council to determine the level of coordination required or if exceptional circumstance provisions in the Code of Practice apply. An Insurance Taskforce specific to the event may be established by the Council if the event requires it and an Insurance Catastrophe declared.

Industry and Taskforce Communications Communications regarding the event and its management to internal industry stakeholders and taskforce members will be undertaken by the Council as required by the circumstances to ensure that all stakeholders have access to relevant information.

Communications with the Public

The Council will undertake media communications on behalf of the general insurance industry to inform members of the public about key general insurance issues that are relevant to the event.

Liaison with Federal, State and Local Government Senior industry representation will be maintained on relevant government emergency committees by the Council. Issues relevant to the coordination of the insurance response to an event will then be addressed by the Insurance Taskforce. The Council will also liaise directly with individual State & Federal Members of Parliament to provide them with relevant information and an escalation path for community issues.

Data Sharing & Decision Support The collection of insurance data throughout the event is of critical importance to many stakeholders, including regulators, media, government agencies and general insurers themselves. The Insurance Council will undertake collection of negotiated datasets from individual insurers in order to inform stakeholders regarding the extent of the insured damage and the progress being made during recovery.

Site Liaison& Innovative Service Delivery Senior industry representation at the disaster will be implemented as required by the circumstances in order to facilitate liaison between responding government agencies, the public and the general insurance industry. This activity will usually focus on recovery or relief centres established by the government and in some circumstances will involve the activation of Insurance Captains to represent the industry at relief centres.

Insurance Challenges & Community Support Matters raised by members of the community regarding their claim or associated recovery issues can typically be resolved quickly & without recourse to dispute. The Council will operate a 24/7 telephone hotline service (1800 734 621) in order to facilitate resolution of community matters. The Insurance Taskforce will be used to resolve community or individual matters that arise.

Event Closure Closure of the catastrophe event, from a general insurance perspective, will occur when it is assessed that greater than 95% of claims have been settled by general insurers.

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INTENT OF THE CATASTROPHE COORDINATION ARRANGEMENTS Natural disasters are an ever present risk for communities living in Australia and it is the general insurance industry that forms the cornerstone of economic recovery in Australia following a disaster event. The reader of this plan only has to look towards the examples of economic recovery and rebuilding following disasters such as Cyclone Tracy ($4BN), the Newcastle Earthquake ($2BN) and the devastating 2009 Victorian Bushfires ($1BN), to gain an appreciation of the critical role that the industry plays in assisting a community to recover.

Individual insurance companies are accustomed to meeting the claims demand placed upon them both during normal business and times of crisis. Notwithstanding the high level of professionalism that has been a hallmark of the Australian industry there is a need, when a large number of claims and issues arise during a significant disaster, for the industry to speak with one voice and to operate cohesively in the best interest of the affected community, and most importantly to ensure that industry service delivery is innovative and appropriate to the needs of the particular community.

Through the application of high level coordination and information sharing, the Industry can increase its net benefit to an affected community. Coordinated efforts from the industry will also facilitate the roles of the various Government agencies who will become involved in recovery operations. A well executed and high level partnership between the industry and Government can significantly improve the delivery of respective services to those impacted by the disaster.

Unfortunately, the science of climate change is signalling that the frequency and intensity of weather based natural disasters are likely to increase and it is my firm view that consumer expectations of the industry will increase proportionally with any increased disaster rate. This fact alone serves to underline the importance of appropriate coordination and communication arrangements with which to prepare ourselves and to service our customer base.

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It follows that during the refocusing of the Insurance Council in 2006, a central goal identified and approved by the Insurance Council Board was to build and maintain a high level coordination capability to be employed following a disaster. The strategic intent of this blueprint objective, for the industry, is to firstly increase the effectiveness of our individual efforts for insured disaster victims and secondly to improve and simplify liaison with an ever maturing State and Federal government emergency response system.

With this objective in mind the Insurance Council has produced the Industry Catastrophe Coordination Plan (ICCP) to guide the implementation of effective coordination and communication measures following a significant disaster. It is important to note that no measures have been contemplated that seek to inhibit competition between our members or for that matter the rights of members to operate independently of the insurance community. It is envisaged that individual member companies will use the insights, information and indications derived from the Insurance Council’s high level coordination efforts to harmonise their individual claims and management activities with the rest of the industry.

The reader should also consider that no plan can cater for every detail of a possible crisis and a great deal depends on the judgment and professionalism of member company representatives to ensure that effective coordination can be carried out. The guiding principles described on the following page will, wherever possible, be used to adapt the industry response to the circumstances at hand.

This plan provides an excellent framework to ensure a cohesive response from the industry and I invite all members to engage in its execution (when necessary) with a sense of collaboration and support for the Australian community.


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Problems Solving & Smoothing Provide access to senior industry

representa1on capable of reaching back into the industry to decisively handle issues where necessary, before minor issues are misconstrued and add to the trauma of the affected community.

Senior Industry Representa9on Provide access to impar1al senior industry

representa1ves to be involved “from kickoff’ at relevant Federal, State and

Local Government Emergency CommiEees.

Data Sharing & Decision Support Provide key industry perspec1ves and

relevant economic data that is relevant to the catastrophe event in order to assist

decision makers in understanding the true impacts of the event and progress being

made during recovery.

Public Educa9on Provide clear, concise and relevant messages regarding insurance and

recovery issues for the community in order to prevent unnecessary anxiety through miscommunica1on or lack of

awareness.

Communica1on & Delivery of Innova1ve Insurance Recovery

Services

GUIDING PRINCIPLES FOR THE CATASTROPHE COORDINATION ARRANGEMENTS


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ASSESSMENT OF THE CATASTROPHE EVENT Catastrophe events and their outcomes, when they occur, can be unexpected and instant like an earthquake, or in the case of some bushfires, cyclones and floods they can arrive with some warning and time to prepare.

Regardless of the source of the catastrophe the most important issue is to make a judgment regarding the extent of the loss, the needs of the community and the public expectations that may arise with regard to the industry. This early assessment will drive actions regarding information collection, liaison with government, communications and coordination activities.

Unfortunately, there is no one formula or impact matrix that can adequately encompass the complex environment of speculation and expectation that surrounds a disaster event.

Some events can involve a significant number of claims and financial loss and yet attract little or no comment or need for coordination in what may be a highly resilient community. Other events involving a relatively small number of claims can create a disproportionate need for assistance in the community as well as media interest for a variety of reasons.

The most appropriate methodology is one that uses qualitative assessment incorporating the context of the disaster itself.

The assessment of the need to carry out full coordination for an event will be conducted by the Insurance Council.

Board consultation will be carried out in situations where Exceptional Circumstances* may exist due to the size, location and nature of the event, giving rise to subsequent relaxations on specific Code of Practice requirements for the processing of claims.

Following declaration of a catastrophe event, the insurance Council will allocate a Catastrophe number, activate an Insurance Taskforce and commence coordination of issues and communications with government.

Where there has been a declaration of a catastrophe event including Exceptional Circumstances, insurers will be advised regarding the specific relaxations on timelines for claims management in Section 3 of the Industry Code of Practice.

ACTIONS FOLLOWING ASSESSMENT 1.  Insurance Council to communicate decision to catastrophe stakeholder

group, including any Board endorsement of an Exceptional Circumstances situation invoking relaxations to the Code of Practice.

2.  Insurance Council to allocate a Catastrophe number for the event and define if necessary the geographic and time boundaries for the event.

3.  Insurance Council to activate an Insurance Taskforce for the event comprising Insurers, NIBA, FOS, AICLA and Master Builders Association if relevant.

4.  Taskforce stakeholders are to nominate a suitably senior representative for the Insurance Taskforce.

5.  Insurance Council is to make immediate contact with impacted State and Federal MPs, advising that a Taskforce has been established and providing an escalation path for any issues that present themselves to local MPs.

6.  Insurance Council to make contact with relevant emergency Services Ministers, Federal Treasury, APRA, and Directors of relevant first response agencies, as well as GM and Mayor of impacted local government areas.

Recommended factors and triggers for a Catastrophe declaration:

Factor Rule of Thumb Level of Community Impact

The higher the level of an1cipated impact on the local community, the higher the level of coordinated response by the insurance industry.

Media Impacts The higher the level of an1cipated sustained media repor1ng on the issue, the higher the level of coordinated response. Also consider what hot insurance issues are ac1ve and if there is a poten1al crossover with the catastrophe event that may cause unnecessary media interven1on.

Projected Claims Cost

Projected claims cost exceeding $25 million may require a higher level of coordinated response.

Government Response

The higher the level of coordinated government response to the issue, the higher the level of coordinated response from the industry.

Poli1cal Representa1ves Affected

If State and Federal MPs represen1ng the affected zone(s) will require informa1on support, a higher level of industry coordina1on maybe required.


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ACTIONS FOR INDUSTRY & STAKEHOLDER COMMUNICATIONS 1. Insurance Council to issue communications to taskforce members advising on issues as and when they occur. 2. Stakeholders such as NIBA, FOS, AICLA and Master builders are responsible for communication with their own constituents and may replicate any industry communication for the taskforce unless the communication is marked ‘confidential’. 3. Insurance Council to coordinate teleconference and communications as required for taskforce members in order to develop required data and actioning of relevant industry issues.

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INDUSTRY AND STAKEHOLDER COMMUNICATIONS Effective internal communication within the industry following an insured event is critical. A failure by the Insurance Council to provide effective communications to its members and aligned industry bodies may result in the delivery of conflicting messages to the community regarding the Industry response, and is to be avoided at all cost.

The Insurance Council maintains a Master Catastrophe Coordination Contact List (Master List) that will be used to distribute Email alerts (if required) following assessment of an insured event. This list is also used, where appropriate, to provide advice on disaster events that are being monitored or that are predicted but have not yet caused any damage.

For a declared catastrophe event, the initial communication will be to the Master List. This communication will contain; the assigned Catastrophe number, details of the catastrophe event, details of known damage, details of the government response, coordination being undertaken for the industry, and finally a call for nominations to stakeholders who have a claims footprint or interest in the disaster zone to nominate for the Insurance Taskforce.

Following this initial communication about the event, only those who nominate for the Insurance Taskforce will receive ongoing communications.

Once formed, the Insurance Taskforce becomes the hub for coordination of issues relating to the insured recovery effort. Coordination for whole of industry issues is carried out by teleconference or videoconference. Details are provided by email prior to meetings. Matters concerning individual stakeholders are managed one-on-one with the stakeholder by staff of the Insurance Council assigned to manage the taskforce.

To supplement the operational effort being undertaken by the Insurance Taskforce, the Insurance Council also issues Controlling Officer circulars to member companies to inform respective CEO’s about any particular coordination issues.

Maintaining contacts on the Master List is critical for Stakeholders who wish to be involved in the coordination of Catastrophe Events. The following stakeholders qualify for membership of the Master List (and any Insurance Taskforce established):

ACE Insurance Aioi Insurance Allianz Australia Ansvar Insurance AMP AON Group Assetinsure Auto & General AVEA Calliden Catholic Church Insurances Chartis Insurance Comminsure Elders Insurance Employers Mutual FM Global Genworth Financial General Reinsurance Great Lakes Guild Insurance Hallmark General Insurance HDI-Gerling Insurance OnePath LawCover Insurance Lloyds Australia MDA National Medical insurance Group

MIPS International Mitsui Sumitomo Munich Holdings Australia NTI Limited Nipponkoa Insurance QBE Insurance RAA insurance RAC Insurance RACQ Insurance RACV Insurance Sompo Japan Insurance Southern Cross Benefits Suncorp Insurance GIO Insurance AAMI APIA Shannons Insurance Bingle insurance Vero Insurance Sunderland Marine Swiss Reinsurance Territory Insurance Office Tokio Marine Virginia Surety Wesfarmers Insurance Lumley Insurance Progressive Direct Real Insurance

Westpac Insurance XL Insurance YOUI Insurance Zurich Financial Services Insurance Australia Group NRMA Insurance CGU Insurance Swann Insurance SGIC SGIO Buzz Insurance Just Car Insurance

National Insurance Brokers Association Financial Ombudsman Service Australian Institute Chartered Loss Adjusters

Master Builders NSW Master Builders QLD Master Builders VIC Master Builders SA Master Builders WA

Stakeholders should ensure that they have updated relevant contacts (nominated staff) for the Master List in order to guarantee receiving catastrophe alerts.


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ACTIONS FOR LIAISON WITH GOVERNMENT 1.  Insurance Council to maintain presence on standing emergency

committees. 2.  Insurance Council to establish presence on any specific government

taskforce for the event. 3.  Insurance Council and Insurance Taskforce to address needs and

perceptions of government as required.

A central pillar of the industry’s strategy for presenting a ‘whole of industry’ interface following a catastrophe is establishing high level impartial liaison between the general insurance industry and any standing State & Federal emergency committee’s as well as any specific taskforce established for a defined event.

The Insurance Council’s, Risk & Disaster Planning Directorate, has established membership of each state’s standing emergency & recovery committee (or named equivalent).

Industry membership of specific taskforce’s established in the wake of a particularly significant catastrophe will be sought by the Insurance Council following an event on behalf of the industry. The Insurance Council’ appointed Senior Industry Representative (see next page) will represent issues or advice that the industry expresses, to government regarding recovery operations. Industry views and issues to be represented to government bodies will be coordinated through the Insurance Taskforce for the event.

Any issues or concerns raised by Government that relate to industry or its members will be discretely managed and/or coordinated through the Insurance Taskforce for the event. An issues list reflecting specific issues relating to the catastrophe at hand will be developed by Taskforce for engagement with Government. The list may include issues such as (but not limited to):

The Insurance Council of Australia will represent the general insurance industry on catastrophe issues to the media. No member representation will be undertaken by the Insurance Council and all data, statistics, information and advice will be provided to the public on an aggregate basis without naming individual member companies. The Insurance Council’s Communications Department is responsible for distributing information and providing whole of industry comment. No media activities are contemplated by this plan or the Insurance Council that would prejudice individual member company statements or positions, member companies retain the inherent right to make their own public statements as and when required. However, the whole of industry position can only be communicated to best effect if it is first harmonised with any individual statements being made. Initial communications with media will focus on managing expectations and realistic timeframes about what data can be obtained and provided in relation to the catastrophe. Coordination with member company communications representatives is critical. The Insurance Council will establish a communications working group of affected member companies to ensure that there is a continual flow of information/approvals/views on the whole of industry comment being developed and provided. An Initial press release will be sourced from pre‐formatted Insurance Council media templates. The press release will be written to provide initial information to those affected by the disaster. It will contain general information about the disaster, i.e. where it occurred, at what time, and then details about contacting your insurer and where to get more information.

ACTIONS FOR EXTERNAL COMMUNICATIONS

1. Insurance Council to establish a communications working group from member companies. 2. Insurance Council to issue first and subsequent ‘whole of industry’ media releases and to provide the industry spokesperson. 3. Insurance Council to provide agree industry level talking points to all communications teams and CEO’s as required. including where necessary an explanation/position on any declaration of Exceptional Circumstances. 4. Insurance Council to manage ongoing media enquiries with reference to communications working group and Insurance Taskforce where required.

COMMUNICATIONS WITH THE PUBLIC LIAISON WITH GOVERNMENT

Relief Funding Arrangements for the Insured Community

Interac1on with Relief Centres and One-‐Stop-‐Shops

Trades & Supply Availability that will influence recovery

Recovery and Repair Timeline Expecta1ons

including the implica1ons of an Excep1onal Circumstance

declara1on by the ICA Board.

Temporary Accommoda1on Issues in the Disaster Zone

Insurance themes & messages to be combined

with government communica1ons

Cleanup, Contamina1on and Disposal Policies

Data Availability and Repor1ng needs

Problems Solving & Dispute Resolu1on Protocols


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ACTIONS FOR SITE LIAISON 1.  Insurance Council to appoint a Senior Industry Representative from

the Insurance Council within 24hrs, if required. 2.  If required, Insurance Council to coordinate the appointment of

members companies to hold responsibility for the Insurance Captain role at specific relief centres.

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SITE LIAISON & INNOVATIVE SERVICE DELIVERY Senior Industry Representative

Some incidents will be significant enough in terms of impact to the local community to warrant the deployment of a senior Insurance Council representative to the catastrophe site.

Within the first 24 hours a decision will be made by the Insurance Council on the requirement for an industry representative “on‐the‐ground” in the disaster area, typically to be located at any relief or recovery centre established by government agencies.

The role of the industry representative will be to:

1.  Identify and report any issue which may impact upon the general insurance industry, individual insurers or recovery efforts for policyholders.

2.  Liaise with Ombudsman, Broker and Loss Adjuster industry representatives on behalf of the industry as required.

3.  Provide onsite impartial insurance advice to local recovery services and any established government taskforce.

4.  If required, provide community briefings on Insurance processes and action being taken by the industry.

5.  If required, participate in legal aid and consumer action group forums that may be established by special interest groups following an event.

6.  Represent the CEO of the Insurance Council as the local representative for the industry for the purpose of media briefings and/or approved commentary.

7.  Represent the Industry to locally based or visiting Sate and Federal MPs and staff – Regularly update members regarding which MPs have been visited, to ensure that member level visits can be coordinated/de-conflicted.

8.  Where required, represent individual member views to relevant Government agencies involved in the recovery operation.

9.  Seek resolution of detected problems and issues involving insurance claims (specific and general) by liaison between the member company and any taskforce established, before the problem escalates to a formal dispute.

In extreme circumstances, where Insurance Council resources will not suffice, additional member company representatives may be appointed as Insurance Captains to represent the industry at relief centres.

Insurance Captains

In some events, where there are multiple government run relief centres and an urgent community need exists, the most efficient way for the industry to project an industry level presence locally will be through the appointment of an ‘Insurance Captain’.

Insurance Captains are member company staff who have been volunteered by their parent company, through the Insurance Taskforce, to fulfil the role.

The Insurance Captain is the first point of contact with customers at a relief centre who have an insurance issue. They will :

1.  Direct consumers to their insurer representative (if they are onsite, at which point no further action need be taken by the captain), or

2.  Execute the Insurance Captain process on the following page 3.  Conduct an onsite meeting at least once a day with other insurers to ensure proper

coordination of any site issues and the execution of this process. 4.  Manage Relief Centre rosters. If the Insurance Captain role is being shared

between companies or individuals, all contact details for personnel who will be filling the role must be sent to the Insurance Council to ensure that Insurance captain on duty can be contacted at anytime.

5.  Make contact with the lead government agency present for each site, at least twice daily and at handover times. The government agencies present in the relief centre should know at all times, who the designated insurance captain is and that insured’s can be directed to them.

6.  Re-direct any return claimant who wants follow up their insurer (who is not present) to the Insurance Council on 1800 734 621.

The latest assistance forms & process documentation will be sent to all member companies through the Insurance Taskforce at the start of an event, for distribution to nominated Insurance Captains – the generic process however, is on the next page. Insurance Captains who have questions should raise any issues with their own management chain for input to the taskforce, or directly with the Insurance Council.


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Appointed Insurance Captain

INDIVIDUAL INSURANCE COMPANIES

INSURANCE CAPTAIN PROCESS – ASSISTING WITH COMMUNITY MEMBERS

Direct the Policyholder to the Insurer

Representative Onsite

Provide Policyholder with

P Copy of the Assistance Form P Contact detail for Insurance Captain P Council Hotline Number

Policyholder Completes Assistance

Form

Can Policyholder Identify their

Insurer?

Is there an Insurer

Representative at the Centre?

Record Policyholder and Insurance Council

notification detail in daily log

Does Policyholder

Require Emergency Funds?

YES YES

YES

NO

NO

THEN THEN

NO

Send Assistance Form to Insurance Council

By email or Call 1800 734 621

NO

Insurance Council Sends Assistance Form Details to all

Insurers on Taskforce

P Notify Insurance Council P Contact Policyholder P Process Claim / EFT

YES

YES

YES

Is the Insurer Known?

Insurance Council Sends Assistance

Form Details Relevant Insurer on Taskforce

NO

Contact Insurance Council Hotline

1800 734 621

or Send form to Insurers Designated Claims Number If Known

HOTLINE

HOTLINE

Search Conducted & Policyholder

Found

URGENTLY

NO

Search

Conducted & Policyholder

Found

Notify Insurance Council that Policyholder is Not

Known to Insurer

Call 1800 734 621

Insurance Council Makes Contact with

Policyholder to Discuss Options

NOTE: If 24hrs passes without an insurer identifying

ownership of a Policyholder, the Council will make contact

with the Policyholder

No Further Action

Actions Of

Actions Of

Actions Of


Page 10 of 13 INSURANCE CAPTIAN ICA NOTIFICATION FORM

Name of Customer

Customer Telephone Contact Number

Insured Property Address

Last Postal Address

SECTION 1

Seeking Confirma1on of Insurance for: List Iden1ty of Insurer where known :

SECTION 2

House/Building Yes / No

Contents Yes / No

Farm or Business Yes / No

Motor Vehicle Yes / No

Other Insurance Yes / No

Bank Name & Branch

Account Name

BSB / Account No

Signature

SECTION 3

SECTION 4 Insurance Captain Name:

Date & Time

Relief Centre Loca9ons

Signature

When Form is Complete Send Details Immediately to ICA: Ø  By email, or Ø  By voice to ICA Hotline 1800 734 621 Ø  Please note – facsimile services are no longer supported for catastrophe opera9ons by the ICA.

- Customer Details

- Insurance Details

- Bank Details if Emergency Payment Requested

- Captain / Report Details


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ACTIONS FOR DATA COLLECTION 1.  Insurance Council to commence data collection and analysis verbally

within 24hrs of an event and formally within 7 days. Ongoing collection routine to be based upon requirements of government taskforce and agencies.

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The aggregate size of the insured loss for an event is often the only true reflection of the cost of a disaster event to the community. Data collection concerning the industry claims response to a disaster event and interpretation of that information is an increasingly critical issue facing the insurance community. Data collected by the Insurance Council following an insured event is used by the media for reporting purposes as well by government agencies to make critical and time sensitive decisions regarding the provision of support to an affected community. The essential information requirements likely to be placed on Industry are captured by the following questions:

•  What is the extent of the insured loss following the event? •  What has been claimed in respective classes, what has been reserved and

what has been paid in cash? •  What is the extent of underinsurance for this particular catastrophe event and

community? •  What is the extent of non‐insurance for this particular community? •  Are there any particular classes of insurance experiencing higher than

anticipated claims? •  Are there any claims trends appearing that indicate a particular need in the

community not identified by government? •  Progress of ‘make safe’ works and rebuilding on a monthly basis until close of

the incident. The industry also has a formal arrangement for reporting of catastrophe specific data to APRA in order to assist with APRA’s regulatory responsibility’s. All insurers have been approached by APRA and ‘encouraged’ to provide catastrophe data through the ICA at agreed intervals. The Insurance Council will initiate formal data collection by issuing a tailored data collection template to all members. An example template is on the following page. Following development of reliable data, the focus will shift to frequent updating of data sets in order to demonstrate industry progress and contributions to the recovery effort as well as to pinpoint any issues in the insured community requiring urgent attention.

DATA SHARING & DECISION SUPPORT The most common data requirements are for claims volume by class, reserving by class, cash/emergency payments by class and details specific to Category A and B properties, where;

•  Category A are properties rendered entirely unusable by the event and requiring major repair or reconstruction before reoccupation can occur, and

•  Category B are properties that can continue to be used after emergency repairs (make safe) but will require significant repairs that will impact upon occupancy whilst being carried out.

Every catastrophe is different and the specific needs for data will be shaped by the event and the perceptions of the government agencies and media that the Catastrophe Arrangements are servicing. To this end, the definitions of Category A & B, as well as the specific data sets required, may be varied significantly at the start of the event to suit the circumstances.


Page 12 of 13 EXAMPLE CLAIMS DATA COLLECTION FORM

Please Note: •  This is an example form only •  The ICA will provide a tailored excel template at the start of each event with agreed reporting timelines. •  If an insurer does not report, the APRA report will reflect an absence of data for that insurer.


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ACTIONS FOR WINDUP AND CLOSURE 1.  Insurance Council to review in consultation with government and the

Insurance Taskforce the gradual withdrawal of coordination arrangements for specific events.

2.  Insurance Council to coordinate, as deemed necessary, a debrief process and the develop of any necessary reporting to the Insurance Council Board.

Coordination arrangements for a declared catastrophe event will be gradually shutdown as the circumstances of the event allow. Formal closure for an event will typically occur once 95% of claims have been reported as settled or closed. The Insurance Council’s Risk & Disaster Planning Directorate will report each month to the CEO of the Insurance Council regarding the continued applicability of any arrangements that have been implemented, this report will include the views of member companies and aligned industry bodies represented on the Insurance Taskforce and the stated needs of any government taskforce or committee. Typically, within 3 months of the final coordination arrangements being closed, the Insurance Council will coordinate a debrief session for involved member companies and aligned member bodies and a written report identifying successes and areas for improvement against the industry blueprints for leadership and catastrophe coordination.

During a significant catastrophe recovery operation, insurance challenges both real and perceived will occur. The industry will wherever possible seek to resolve insurance challenges faced by the community through individual performance and adaptive approaches to the provision of services.

Many issues can be resolved through effective communication and innovative service delivery before a dispute occurs, or reputation damage is incurred for the industry.

A key role of the Insurance Council and Insurance Taskforce for the event is to monitor the claims and recovery environment for issues that will potentially cause additional harm or distress to those affected by the event. To carry out this role effectively, the appointed Senior Industry Representative (see page 8) makes early contact with all local MPs, community leaders and government agencies to ensure that those stakeholders can quickly raise challenges that may present within their respective constituencies.

Where an issue is detected that can be addressed through collaboration between insurance stakeholders it will be actioned by members of the Insurance Council and/or referred to NIBA and AICLA for attention.

Once a dispute formally occurs FOS plays a pivotal role as an independent body to assist the parties in the successful resolution of complaints and claims arising out of the disaster. Where the FOS telephone centre or on site operatives detect a potential problem (not a dispute) it will be raised with the Insurance Council and Insurance Taskforce members for attention.

Persistent or recurring issues may also be referred to the communications working party, established for the event, to be included in public and media information releases.

PROBLEM SOLVING

ACTIONS FOR PROBLEM SOLVING 1.  Insurance Council Senior Representative to make contact with all local MPs,

community leaders and government agencies, providing Hotline details for escalation of future issues that may or may not occur.

2.  Insurance Council to address any individual policyholder issue raised by facilitating contact with the relevant insurer from the Insurance Taskforce.

3.  Insurance Council and FOS to ensure that the Insurance Taskforce is informed of any developing trends of issues in matters being raised through the industry hotline and FOS Contact Centre.

WINDUP / CLOSURE / DEBRIEF

Documents

GENERAL INSURANCE INDUSTRY CATASTROPHE … · escalation path for community issues. Data Sharing & Decision Support ... claim or associated recovery issues can typically be resolved