Floods commission names and shames CGU

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On the topic of performance of private insurers The Queensland Flood Commission has named CGU as an insurer who was less meticulous in its responses to the Commission’s Requirements

The Commisions report singled out CGU “The insurer (CGU) stated that all letters advising customers that their claims had been denied ‘detail[ed] the reasons for the decision’ and ‘referenced all material relied upon to come to the decision’. CGU conceded the statement was not correct. The concession was sensible: the insurer’s pro forma letters, which were provided to the Commission, did no such thing. CGU said, by way of explanation, that the shortcomings were inadvertent, the result of pressures of work.
The Commission accepts that CGU was put to considerable work in order to comply with the Commission’s Requirements (and it must be noted that its legal representatives also had to co-ordinate responses to Requirements
issued to NRMA Insurance, which is also part of the Insurance Australia Group). It considers, however, that in those instances, the insurer was neither careful nor diligent in its responses to Requirements”

CGU refused to comment to Quotesonline, CGU which is part of Insurance Australia Group have since offered automatic flood cover for their home insurance policies.

Insurers received an exceptionally high volume of claims as a result of the 2010/2011 floods. The Insurance Council of Australia has reported that, as at 24 November 2011, 463 residential and commercial claims were made as a result of the 2010/2011 floods.

ICA Chief Executive Rob Whelan said the industry supported many of the recommendations, and each insurer affected by the floods would now examine the report before deciding on their next steps.
“The Queensland floods of 2011 were devastating and almost unprecedented in scale,” Mr Whelan said.

 

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