Australian Insurance
Insurance can be traced as far back as the 3rd and 2nd millennia BC, when Chinese and Babylonians developed systems for sailing merchants. Towards the end of the seventeenth century, London’s growing importance as a centre for trade increased the demand for insurance. In the late 1680’s, Mr Edward Lloyd opened a coffee house that became a popular haunt for merchants and ship owners and captains. It became the meeting place for parties wishing to insure cargoes and ships, and those willing to underwrite such ventures.
Today, the need for insurance is vital and recent global disasters have reinforced the importance of being protected. Whilst some non-western countries have been less likely to insure, governments are now highlighting the importance of individuals to be covered.
Australians are certainly big believers in insurance, with recent studies by the Insurance Council of Australia demonstrating that 77% of Australian residential households have a building and contents policy, along with 74% of small to medium Australian enterprises.
Some examples of global catastrophes that have resulted in billions of dollars of insurance claims include; September 11, Hurricane Katrina, the Sichuan Earthquake and the Australian Victorian Bushfires.
September 11, 2001
2,974 victims and the 19 hijackers died in the attacks in the US on 11th September, 2001. The total cost of the September 11 attacks is estimated at US$200 billion in losses, while insurance claim payments arising from the event are estimated to be US$35.6 billion.
Hurricane Katrina, 2005
Hurricane Katrina was one of the worst disaster’s in US history, killing over 1,300 people (with thousands more still unaccounted for), displacing millions and leaving hundreds of thousands without jobs or income. The insurance claim was US$41 billion.
The Sichuan Earthquake, 2008
In May, 2008, a 7.9-magnitude earthquake hit the
Sichuan Province, a mountainous region in Western China;
it killed approximately 70,000 people and left over 18,000 missing.
The Australian Victorian Bushfire’s, 2009
The Black Saturday bushfires were a series of bushfires that burned across the Australian state of Victoria during the extreme bushfire-weather conditions, resulting in Australia’s highest ever loss of life from a fire. A total of 173 people are confirmed to have died in the fires with around 500 injured. This directly impacted 51 townships, destroying over 2,000 homes, along with many businesses, schools and kindergartens. The general insurance industry received approximately 10,000 claims with an estimated insurable cost of AUD$1.02 billion.
Can you imagine losing your house, all of your valuable possessions and not having adequate insurance? Whilst it is clear that insurance is a necessity, the process of finding the right insurance policy can be complicated. In Australia, most insurance is handled by insurance brokers. An insurance broker can be extremely valuable in sourcing the policy best suited for an individual’s requirements, at the most competitive price. A good broker will source only financially secure insurers and can assist in explaining the technical aspects of any policy. Finding the right insurers, with the right policy conditions, the right security and price is a specialised profession.
“I think most of us are never completely prepared for a severe loss, however, it is definitely better to have insurance and not need it, than need insurance and not have it”, said Robert Lawson, Corporate Manager Sydney, Gow-Gates Insurance Brokers.
Gow-Gates Insurance Brokers is a member of the National Insurance Brokers Association (NIBA) and has won industry awards for “Insurance Broker of the Year” by Zurich.
Information provided by Gow-Gates Insurance Brokers
Phone: +61 2 8267 9999
Email: info@gowgates.com.au
Website: www.gowgates.com.au
