Hazard Insurance Partnership set to include a major insurer from the Australian market

Members of the Hazard Insurance Partnership have agreed to include a major insurer and two reinsurers. 

The Hazard Insurance Partnership is set to expand and include new members, following the latest meeting after the announcement of the 2024-25 Federal Budget.

The members of the Partnership have agreed to add an additional major insurer in the Australian market, two major reinsurers, and the Australian Reinsurance Pool Corporation as an observer at future meetings. This expansion has resulted from the Partnership's evolution over the last 18 months, so views from all parts of the insurance sector are heard.

According to the official Meeting Communique, reducing disaster risk that can in turn help put downward pressure on premiums was one of the major discussion points. The Hazard Insurance Partnership Working Group will meet regularly to help develop an approach that considers the inter-relationship between investment in mitigation measures and its impact on insurance premium prices.

The Department of Premier and Cabinet advised members that a new Insurance Affordability and Natural Hazard Risk Reduction Taskforce had been established. The aim of this task force will be to develop an integrated, cross-Government approach to natural hazard risk reduction to minimise the impacts of disaster on the community.

The members also debated the merits of establishing a national flood risk prioritisation approach that identifies high priority catchment areas. The selection of these areas will form the groundwork for deciding flood mitigation investment to reduce the risk of flooding and put downward pressure on premiums.

The next meeting of the Hazard Insurance Partnership will take place on 29 August.