A total of 29,782 people were killed in 302 disasters last year, the body said today. Storms and floods accounted for up to 70 percent of catastrophes but earthquakes were the biggest killer.

Figures released by the Centre for Research on the Epidemiology of Disasters (CRED) and the UN International Strategy for Disaster Reduction showed quakes claimed 20,943 lives, most of them in Japan. The earthquake and tsunami that sparked the Fukushima nuclear plant catastrophe in March was also the costliest disaster, causing damage worth $210 billion.

This was followed by the floods that hit Thailand from August to December which cost the country $40 billion. Australia's worst natural disaster, the floods in Queensland that left 35 confirmed dead and nine missing and cost the state an estimated $30 billion, did not rate a mention.

The number of disasters was down on 2010, when 385 occurred, according to CRED figures. However 2011 practically saw a tripling in costs from $123.9 billion recorded in the previous 12 months. CRED director Debarati Guha-Sapir said: "It was notable last year that many of the disasters were in high and middle-income countries which have the resources for better disaster prevention."

In addition to the Japan earthquake, the centre cited the floods in Brazil in January, the quake that hit New Zealand in February, and Hurricane Irene in the United States in August and September. The Brazil floods were the deadliest in the country's history, taking 900 lives.

Other major disasters included the October earthquake in Turkey and the tropical storm Sendong that hit the Philippines last month, claiming 1,430 lives. This was the second highest death toll for disasters in 2011 after the 19,846 who died in Japan.

"The Japan earthquake and the accompanying tsunami is a reminder to us all that we cannot afford to ignore the lessons of history no matter how forgotton," said UNISDR chief Margareta Wahlstrom." The many major cities located in seismic zones need to take seriously the probability of return events even if many years have passed since the last seismic event of major magnitude.

"Unless we prepare for the worst, then many earthquake-prone urban areas around the world are destined to see even greater loss of life in the future as more and more people move to cities." In total 206 million people were affected by disasters last year. This includes 106 million hit by floods and 60 million by drought, mainly in the Horn of Africa.

Guha-Sapir said droughts and famines were rarely "spectacular" events but caused a massive number of deaths which often went uncounted.

"Reliable statistics and data should be a priority for better and more timely preventative action," the expert said.

Information Obtained From finance.ninemsn.com.au Thursday 19 January

The Insurance Council of Australia has warned of unavoidable premium increases of up to 400 per cent in the wake of the nation's summer of severe floods and cyclones.

ICA's general manager of risk, Karl Sullivan, said reinsurance costs for Australian companies had jumped significantly this year after a string of costly natural disasters since 2008.

Mr Sullivan said many insurance policies covering residential property appeared to have passed on the higher costs with premiums increasing 20 per cent to 40 per cent in recent months.

He said similar increases were likely to spread but much bigger rises of up to 400 per cent were likely for strata insurance in high risk areas, such as cyclone-prone regions.

Insurance giant Suncorp said a 30 per cent jump in the value of claims in the year to June had put pressure on premiums.

"Insurance premiums in Australia have increased as a result of the succession of major claims events experienced in Australia and New Zealand over the last 12 months," a spokesman said.

"These events, as well as other events in the Asia Pacific region, have resulted in higher reinsurance which has in turn increased premiums in Australia."

Mr Sullivan said the adjustment in reinsurance costs was fair, given Australia accounted for 2 per cent of the global market but about 6 per cent of losses.

But he said governments could reduce premiums by mitigating the impact of natural disasters through more stringent building codes and better land use, such as prohibiting construction on flood plains.

The introduction of a standard definition of flood, a mandatory consumer 'opt-out' option on flood cover for home & contents insurance and commitment to a flood risk information portal are among the Federal Government responses to the Natural Disaster Insurance Review (NDIR).

The proposals were announced today by Assistant Treasurer Bill Shorten and Attorney General Robert McClelland, with the Government also releasing a Consultation Paper in which they ask for feedback and comments on the mandatory opt out proposal.

Key Government responses

1. Standard definition of 'flood'

The Gillard Government will introduce a standard definition of 'flood' and all policies that offer flood insurance will be required to contain the standard definition to avoid consumer confusion.

The Government will release draft regulations about the standard definition for consultation by the end of the year:

Flood means the covering of normally dry land by water that has escaped or been released from the normal confines of: A. any lake, or any river, creek or other natural watercourse, whether or not altered or modified; or B. any reservoir, canal, or dam.

The standard definition of 'flood' will be used if the insurer offers flood cover in their home building, home contents, small business and strata title insurance policies.

2. Mandatory opt-out

The Government is also consulting on a proposal that all insurers must offer flood cover as part of home building and home contents insurance policies, while giving consumers the opportunity to 'opt-out' of that cover.

Stakeholders will have the opportunity to comment on the proposal, following the release of a consultation paper today.

"This proposal will increase the availability of flood insurance across Australia, while improving transparency and choice for consumers," Mr Shorten said.

3. Flood risk information portal

The Government will commit substantial funds to establish a flood risk information portal to provide a single access point to existing flood mapping data. This will be complemented by the development of national guidelines, covering the collection, comparability and reporting of flood risk information. The cost of this measure is around $12 million over the period 2012-13 to 2015-16.

4. One-page Key Facts Sheet

The Government will implement a requirement for insurers to provide their customers with a key facts sheet for all home and home contents policies, which will clearly set out on a single page all key information about the features of the policy, and complement the existing PDS.
Further consultation on the content of the Key Facts Sheet will take place early next year.

5. Reinsurance pool

The NDIR panel made a series of recommendations in relation to the provision of affordable flood insurance to those at high risk of flood, including the creation of a reinsurance pool of funds that will enable insurers to provide discounted flood coverage to eligible high risk households.

6. Reforms to the General Insurance Code of Practice and other recommendations

The NDIR made a number of recommendations for changes to the General Insurance Code of Practice to improve insurers' handling of claims and disputes relating to natural disasters. The Government and insurance industry have already agreed to remove the provision that the Code doesn't apply during natural disasters and providing for time limits for the completion of expert reports such as hydrology reports.

A number of other recommendations require detailed consideration by the Government. A process of consultation with relevant stakeholders will be undertaken, and this will include an issues paper to be released in 2012 following completion of the consultation process on the mandatory opt-out proposal.

The full list of recommendations and the Government's responses, together with the consultation paper, can be downloaded from the Treasury website, which also provides instructions on how to make a submission and the deadline for doing so.

In total, the Government has responded to the 47 recommendations in the NDIR, which was commissioned to examine insurance for flood and other natural disasters following the 2010 and 2011 summer floods.

The NDIR made a range of recommendations encompassing flood risk management, insurers' claims handling and dispute resolution processes, and the provision of flood insurance.

NIBA CEO Dallas Booth said that NIBA was already at work on its response. "NIBA is now analysing the government responses to the NDIR and examining the issues raised in the Consultation Paper," he told IRP online. "We will keep members informed of our progress."

information obtained from NIBA website 16/11/11

The financial research company analysed 38 insurers and 74 policies and obtained over 16,000 individual quotes across the six states to rate companies.

It says the average home and contents premium increased 12% in Queensland, 7.4% in NSW, 5% in Tasmania, 4.9% in SA, 4.7% in WA and 4% in Victoria.

Nationally, 62% of policies have had price increases of no more than 10%, but 31% of Queensland policies have increased by more than 20%. In flood-affected areas, a regional postcode has seen increases of up to 41% while premiums have risen up to 36% for a Brisbane postcode.

Canstar Cannex studied flood coverage this year and found 92% of policies now cover flooding caused by rainwater runoff, 52% cover flash and riverine flooding, 29% tidal flooding and 16% seawater flooding.

It says that for building-only insurance, ANZ and Commonwealth Bank are “standouts for the value they offer consumers across the country”.

Australian Unity and Westpac again top the list for contents insurance.

For home and contents combined, Australian Unity and Commonwealth Bank are top, with Australian Unity very strong in Queensland and WA and Commonwealth dominating in Victoria, SA and Tasmania.

New market entrant Coles Home Insurance topped three categories in NSW – building-only, home and contents and contents only.

Canstar Cannex Research Manager Chris Groth told insuranceNEWS.com.au he can understand how consumers find it hard to compare policies, and many “might not find the energy or motivation to start doing it”.

He says this year some insurers have tried to make policies easier to understand by including a one-page explanation of important information within their product disclosure statements.

Information provided by insurancenews.com.au   24th October 2011

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The Insurance Council of Australia (ICA) says while more than half of the Queensland flood and Cyclone Yasi claims have been settled, it could take another 12 months to finalise the rest. New figures show that $1.9 billion has already been paid out in cash settlements and services and that an average $13 million is being spent by insurers each day.

ICA GM Risk and Disaster Planning Karl Sullivan says more than 60% of the 128,875 claims have already been paid out.  But although the industry is working as fast as it can, rebuilding and repair work could still take another 12 months. “Building a house takes a long time,” Mr Sullivan told insuranceNEWS.com.au. “Some people might want to add a room here or there, which means completely redesigning their house. Insurers are working with them on that.”

Mr Sullivan says one of the biggest issues is being able to manage the perception between what the Federal Government believes is an acceptable timeframe and what is practical and achievable. “The industry is working as fast as it can, but the last thing we want is shoddy repairs,” he said.

Information obtained from insurancenews.com.au on 5th September 2011