AFCA receives over 900 complaints following recent floods

The Australian Financial Complaints Authority (AFCA) has revealed it has received about 950 complaints from flood-affected consumers six months on from the start of the South-East Queensland/northern NSW floods.

AFCA confirmed it was forced to expand its general insurance complaints team in response to the “unusually high number” of complaints and activate its “significant event” response plan after the flooding began in February.

It was revealed that delay in claims handling is the most common cause for complaints, followed by claim amounts and claim denials. 

“The scale and intensity of this natural disaster means it continues to have a significant impact on people,” AFCA’s lead ombudsmen for insurance, Emma Curtis, said.

“Everyone’s wish is for those affected to be able to get back on their feet and on with their lives.

“People should always talk to their insurers first about any concerns they have, but AFCA is here to help consumers and insurers resolve complaints when they can’t find a way through on their own.

“Remember that you can come directly to us — you don’t need to pay someone to represent you.

“AFCA was designed to be a free and accessible alternative to a court or tribunal. Of course, you can appoint someone like a financial counsellor, family member or someone else [to] assist you, if you’d prefer.”

A number of industry groups threw their support behind impacted Australians during the floods, including the Financial Services Council (FSC) who urged anyone affected and who cannot find their life insurance documents to make contact.

In early March, the Insurance Council of Australia (ICA) revealed that insurers had received 96,844 claims related to the flooding in South-East Queensland and NSW.

The general insurer announced in July that it alone had received 3,895 claims relating to the severe weather and floods across NSW, mainly for storm damage to homes, property and vehicles.

Recent research has revealed that Australians have paid a bundle over the past 12 months due to extreme weather.

The Insurance Council of Australia (ICA) has commissioned a study from the McKell Institute, The Cost of Extreme Weather, which revealed that Australians are paying $1,532 on average due to extreme weather.

Over the last 10 years, the average annual household cost of extreme weather has been $888, however that figure is expected to increase to more than $2,500 a year by 2050.

[RELATED: Disasters cost households more than $1000, study reveals]