On Tuesday, 27 August, we proudly launched our latest report, Unsettled: Climate Risk and Cash Settlements in Home Insurance, at the Wheeler Centre in Melbourne. This event was a significant milestone for us as we brought to the forefront a critical issue affecting countless households across Victoria. We were honoured to have Dr. Daniel Mulino MP, Federal Member for Fraser, and Dr. Antonia Settle, the report’s author, join us for the occasion. Their insights were invaluable, and we were especially moved by community member Madeleine Serle, who shared her firsthand experiences with disaster recovery following the devastating 2022 floods. Two points made by Madeleine that stood out to us were:
“[financial counsellors] are without a doubt the most important first intervention for someone who’s been [impacted by] disaster.”
“There needs to be a standing workforce of financial counsellors available in disasters so that they can continue to intervene and assist.”
Unsettled, addresses a troubling trend observed in the aftermath of the 2022 Victorian floods: insurers increasingly opting for cash settlements in home insurance claims. While these settlements provide resolution for challenging claims, they often leave households—who believed they were adequately insured—facing significant financial losses. This practice not only undermines long-term economic security but also reflects deeper issues within the insurance system, exacerbated by emerging climate risks.
Unsettled draws on the experiences of financial counsellors who have supported flood-affected households. The report reveals that cash settlements often result from problematic claims, marked by insurer errors, low-ball offers, and prolonged disputes. These frictions highlight systemic issues in the insurance industry that urgently need addressing. To protect consumers, the report offers policy recommendations aimed at ensuring that insurance practices genuinely serve those in need, especially in the context of increasing climate-related disasters.
The launch event was a success, with around 40 attendees joining us in person and more than 100 viewers around the country (and internationally in New Zealand) via our online live stream. For those who missed the live event, you can watch the full launch on YouTube here.
The report has already garnered media attention, highlighting the seriousness of this issue. On the day following the launch, two significant news articles were published:
- Flood victims need to be protected from unfair cash settlements from insurance companies, report says (ABC News)
- Cash settlement failings spark call for more regulation (Insurance News)
We encourage everyone to read these articles and share the insights from our report. Together, we can advocate for necessary changes in policy to ensure that insurance serves its true purpose: to protect and provide security in times of crisis.
We look forward to continuing this important conversation and working towards meaningful policy change to protect vulnerable households.