The Natural Disaster Funding Arrangements Draft Report Deserves the Support of the Insurance Industry

Idraft report have read with interest the Productivity Commission Draft Report on Natural Disaster Funding Arrangements.

The findings are in line with what those in the front line of claims have known for years.

Government would be far better off spending tax payers money in mitigation strategies rather than providing handouts after an event.

My first point is that the insurance industry has the infrastructure to ensure that only valid claims/losses are met.

Secondly, providing handouts is a disincentive for full insurance. It rewards those in society that elect not to insure – not the prudent and risk averse.

Thirdly, the government and charities can never provide sufficient enough funds to pay all the losses suffered by everyone in the community. The best way to have people covered and protecting them, their communities and the economy is to encourage full insurance.

To view a link to the reports (there are two volumes) click here.

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