At AFCA, we have developed a robust response plan for significant events, including natural disasters and severe weather, which is likely to spark a surge in complaints. This plan prioritises early communication with key stakeholders and streamlines the complaint resolution process.

To ensure our response remains effective, we work closely with industry leaders like ASIC the Australian Treasury, the Australian Prudential Regulation Authority (APRA), and organisations such as the ICA.

With the increasing frequency of disasters like floods and bushfires – driven by climate change – millions of Australians have been impacted.

We closely monitor complaints following such significant events and share vital data and insights with our stakeholders. But it is not just about numbers; behind each complaint is a person or family struggling to rebuild their lives. That is why we have established dedicated processes to support individuals experiencing vulnerability, ensuring they receive the care and attention necessary for their recovery.

Over this reporting period, AFCA activated our significant event response plan for four events declared ‘significant’ by the ICA:

• Tropical Cyclone Jasper (declared on 18 December 2023)
• Christmas storms across Queensland, NSW and Victoria (declared on 27 December 2023)
• Valentine’s Day storms in Victoria (declared on 16 February 2024)
• NSW weekend severe storms (declared on 10 April 2024).

The top issue across all events were delays in claims handling. While acknowledging that significant events, such as natural disasters or other large-scale issues, can cause unavoidable delays, AFCA expects insurers to have robust plans in place to manage these situations effectively. Firms should be prepared to handle increased volumes of claims and maintain clear communication with policyholders.

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