Andrew Gee (Calare, Independent) Share this | Hansard source

When residents across the Central West woke up on Sunday 13 November 2022, they had no way of knowing that it would be the last day before their lives were split in two: before and after the storm. That night and the following morning, locals across Molong, Cudal, Eugowra, Wellington and Canowindra faced water torrents so strong and terrifying that roads became rivers, homes sailed down streets and two much-loved residents were, tragically, lost.

For those who saw the absolute destruction of that day and the monumental clean-up that followed, it would be hard to find a scene more gut-wrenching and heartbreaking. But more heartache was to come. Hundreds of disaster-hit residents and business owners, eager to pick themselves up and fight on, found themselves at the mercy of insurance companies. In the nine months since, the rebuilding and recovery process has been made much harder, and the tragedy much worse, by the cold-hearted and shocking response of insurers to policyholders. In some cases it was almost like they were in competition for which one could care less. Our region and many other disaster-hit areas along the east coast have been left reeling from the callous conduct of insurance companies, from long delays in claims processing to widespread knockbacks. It's taken a massive toll across our region.

Stories of tragedy are everywhere. During the public meetings I held around the electorate recently, we heard stories of homes being over-stripped out, denial after denial of claims, and insurance premiums skyrocketing for some people to up to 10 per cent of the value of their property per year. The stories of our disaster-hit residents who faced horrific torrents of water, only to be hung out to dry by their insurance companies, must be heard.

Change needs to come from this. That's why I called for a parliamentary inquiry into the insurers' response to these natural disasters. I would like to thank the Assistant Treasurer and Minister for Financial Services for visiting the storm and flood affected towns of Eugowra and Molong recently and seeing firsthand the devastation that residents have been faced with. I would also like to thank the minister and his office for their productive engagement in drafting the terms of reference for this inquiry. I thank the Prime Minister for doing what he undertook to do in determining if a parliamentary inquiry would be possible. This inquiry must not be just a box ticking exercise. It must be a turning point, a pivotal moment in the way insurers deal with disaster-hit policyholders. Enough is enough. In response to my question last week on this very issue, the Assistant Treasurer confirmed—and he repeated it in the House today—that it was through listening to stories like those shared by Sarah Bone from 17 Shades Hair Studio in Molong, Kaylene Philpott from the Molong Post Office and Newsagency, and Brian and Lesley Smith from Eugowra that made him see that a broader scope for the inquiry into insurance was needed.

As Assistant Minister Jones said in his response, 'Australians take out insurance policies to protect themselves in times of need and tragedy.' These policies are meant to be a safety net for policyholders, not an added burden when disaster strikes. Insurance policies should not only be simple and easy to understand; they should not be adding to the anxiety created by a disaster through mismanagement of the claims process. The Assistant Treasurer said he took from his visit to our area that communities like Eugowra, Molong, Wellington and Canowindra have pulled together like country communities in Australia do. But they need more support and they need their insurance claims dealt with better and their policies honoured in a better way. That is why I engaged so heavily with the Assistant Treasurer to produce the terms of reference that I believe will enable not just residents from our area but people across Australia who have had their lives turned upside-down by natural disasters and the response by their insurers to tell their stories and ensure this level of heartbreak is not experienced again.

I note that one of the terms of reference did raise an eyebrow, and that is that the report will take into account other reports, such as the Deloitte report into the insurers' response to the recent storm and flood events. I just say this about that particular issue: whilst I wasn't consulted on that particular term of reference, to me, that is the big end of town reviewing the big end of town. Deloitte was commissioned by the Insurance Council of Australia to review their performance, and they obviously want the committee to take that into account. Well, I have no doubt that this committee will give that report the weight that it will deserve. I think it will be the evidence that local residents and business owners around Australia will give directly to this inquiry that will really tell the story. I put my faith in this committee and not the review that the big end of town is undertaking for the big end of town.

I urge the inquiry to travel to the Central West to hear the stories of heartbreak and the cold-hearted response of insurers, just like the Assistant Treasurer did during his visit. The reality is that there is a huge power imbalance between policyholders and insurance companies. At the end of the day, if a policyholder wants to fight a knockback from an insurer, they're going to need to fork out big dollars for an expert hydrology report and also a solicitor. If you've lost everything or your business is in ruins, there is just no prospect of fighting back. That's the cold, hard truth. Despite what the industry says, at the end of the day that's what you need to do—you need the hydrologist and the solicitor to take these companies on.

The stories of insurers trying to do the right thing are sadly few and far between. Australians expect insurers to be assessing claims in a generous and kind-hearted way, and nothing less. Insurance companies don't answer just to shareholders but also to the nation. They don't just have insurance contracts with our residents; they also operate with that social licence. We need to get to the bottom of what's happened here and make sure that the pain that insurance companies have inflicted on our communities is not repeated in others. I'm hoping that this inquiry can shine a real spotlight on the experience of our local residents and that they will get a chance to tell their stories on a national stage so that other communities won't have to go through what we have endured.

I also urge the state and federal governments to activate the full suite of disaster assistance measures that have been made available to other parts of the state but have sadly have been denied to our residents. This is support that has not been delivered to date—assistance such as the home buybacks and retrofit schemes, the Community Assets Program to help rebuild towns and villages, funding for our damaged roads and bridges, and a program similar to the Northern Rivers Commercial Property Return to Business Support Grant. The people of the Central West deserve nothing less than the same level of support these other areas have had, and I will keep on fighting until they get it. The injustice of this support being activated for some of the state not our region is appalling. We are being treated as second-class citizens. It's wrong, and this wrong must be made right.

I look forward to this inquiry being a catalyst for change for disaster-hit Australians right around our country.

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