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Household hoses are costing Insurers over $500M per year
GSA's Claims team had the opportunity to attend the ANZIIF Liability Conference. Free food aside, they learnt about emerging trends within the Liability sphere, and generally in the wider insurance market. Aluminium cladding, class actions, new policy types and insurance tech were all covered.
Below is a handful of key points from the conference. Luke Yates has simply listed these for sake of reading ease, though can readily expand upon if required:
- Class actions are absolutely on the rise, particularly investor/shareholder cases, with litigation funders now kicking in for around 35% of all class actions. Relatively speaking, and despite this sharp increase, Australia still reports a low number of class actions over all. It is expected that environmental class actions will become more prolific into the future, given the current wave of social conscience, and resulting legislative changes, surrounding these issues.
- With regard to the concerns around cladding, it should be noted that of all buildings assessed in NSW to date, a 1/3 require further investigation and replacement of their exterior cladding. Interestingly, this cladding is susceptible to both fire and leaking, depending upon the environment in which it is being installed.
- Failures of the humble, household braided water hoses are costing Insurers over $500M per year in water damage claims. This has led to some Insurers paying for water pressure monitoring systems to be installed into households. If the monitor detects water pressure issues, it will alert the homeowner before a slow, undetected – or sudden and active - leak develops.
- Given the strict regulations now being employed by the Environmental Protection Agency (EPA), the EIL (Environmental Impairment Liability) policy is an emerging product of note.The name is a little misleading though, as it’s not simply a Liability policy, with 1st Party clean-up costs also being covered on most EIL policies, which will be a real boon for Insured entities operating within this space.
- Interestingly, all NSW citizens have a responsibility to report any potential environmental occurrence to their relevant authority, within 24 hours of the incident. Furthermore, the EPA can elect to prosecute a failure to notify of an incident, even if there is no lasting environmental impact. The EPA don’t play!
Speak to Luke Yates if you would like anymore information!