FLOOD AFTERMATH – April, 2011

With the aftermath of the recent floods in Queensland, New South Wales and Victoria still being cleaned
up another storm is brewing this time between insurance companies, the Federal Government and the
Australian public.

From watching various news and current affairs programs it is evident that the insurance industry’s varied
stance on flood cover is both confusing and frustrating not only to those affected but to the general
public.

The Federal Government has stepped in and formed a Review Committee. Among other things the
Committee wants to investigate the different approaches taken by the insurers in regards to such losses as
flood and why a number of policy holders affected were not aware of the cover that they actually had.

The Insurance Council of Australia (ICA) has advised that to date 50,000 claims have been lodged due to
the Queensland floods and the estimated total claim cost could be as high as $2.3 billon, bear in mind that
this figure just represents those covered by insurance and it is estimated that possibly a further 30,000 to
50,000 policyholders were not covered.

Hopefully the results of the Review Committee will help towards preventing the current situation we are
now seeing where two homes side by side in the same street, both insured, both affected by flood and
only one being repaired.

The findings of the Review Committee are to be submitted to the Government by the 30 th of September,
2011.

McKillops South Insurance Brokers Pty Ltd is an Authorised Representative (No 344421) of McKillop Insurance Brokers Pty Ltd ABN 48 009 551 053 AFS No:
241254

ADDRESS: 19 Goulburn Street, Hobart PHONE: (03) 6234 2088

POSTAL ADDRESS: PO Box 4588, Bathurst St, Hobart, 7000 FAX: (03) 6234 5871
EMAIL: neilh@mckillops.com.au MOBILE: 0488 312666