More than 7,000 insurance claims have been lodged following the severe flooding in New South Wales’s Mid North Coast and Hunter regions, with insurers continuing to expand their on-the-ground presence as recovery efforts progress.
According to the Insurance Council of Australia (ICA), claim volumes have climbed steadily in the past week as access to affected properties improves. Insurers are prioritising clean-up guidance and policyholder support to expedite recovery.
The insurance sector has established two physical hubs to provide policyholders with in-person support. The facilities allow residents and business owners to lodge claims, access information and discuss concerns directly with insurers.
The Taree hub, located at the Taree Leagues Sports Centre, will remain open until June 13, operating daily from 10am to 5pm.
In Port Macquarie, a temporary hub has opened at the corner of Gore and Gordon Streets and will remain active through June 1, with opening hours varying across the week.
ICA chief executive Andrew Hall said direct engagement was a key part of the industry’s flood response strategy.
“When a community is impacted by a large-scale event, face-to-face support through a claims process is incredibly important, which is why the insurance industry has invested in significantly uplifting consumer service staff and sending resources directly to those affected,” he said. “Recovery from a flood doesn’t happen overnight, and the insurance industry will continue to direct support and resources into the region over the coming months.”
The ICA has officially declared an insurance catastrophe for the affected areas, triggering an industry-wide protocol to accelerate claims handling and deploy additional support resources.
Under the declaration, urgent cases are prioritised and insurers have sent disaster recovery teams to support impacted customers. An industry taskforce has been activated to identify emerging issues and coordinate response efforts.
The ICA has also reactivated its disaster assistance hotline (1800 734 621), offering general claims advice to policyholders.
Policyholders are being advised to contact their insurers early, even if the full extent of damage is not yet known – something insurance professionals could share with their flood-affected clients.
The ICA recommends photographing affected areas, documenting damaged goods, and avoiding use of electricity in flood-impacted homes until cleared by a professional.
For agricultural policyholders, the ICA advises working directly with specialist brokers, given the varied nature of farm insurance arrangements.
Most home insurance policies include storm coverage, although flood cover may differ based on policy terms. Some customers may have opted out, and the ICA encourages all policyholders to check coverage directly with their insurer.
Due to the imminent risk posed by the flooding, several insurers have applied embargoes on issuing new policies or altering existing ones in certain regions. These temporary restrictions are a standard measure used to prevent adverse risk selection and to maintain fairness across the insured base.
Recent ICA data indicated a significant portion of high-risk properties remain underinsured.
Of the 1.36 million properties exposed to flood across Australia, approximately 225,000 homes and 73,000 businesses face severe or extreme flood risk.
However, only around 23% of homes in these zones have flood cover, compared to 60% nationally.
The ICA noted that many of these high-risk properties are in low-income communities, where affordability remains a challenge. Around 70% of those most exposed live in areas where household incomes fall below the national median.
The insurance industry continues to call for expanded public investment in flood risk mitigation.
The ICA has proposed a $30 billion Flood Defence Fund, to be co-funded by federal and state governments, aimed at infrastructure, home resilience upgrades, relocation programs and improved defences.
