The Insurance Council of Australia (ICA) has revealed it is working with independent consultants to design a form of pandemic insurance in Australia.
ICA head of risk and operations Karl Sullivan revealed this during a House of Representatives Economic Committee Inquiry into Australia’s general insurance industry on 28 April.
The work is currently at the “broad options” stage, he said, but the ICA was looking at having it completed in the next two months.
He was asked by MP Tim Wilson about whether there was any discussion in relation to domestic pandemic insurance, according to a report in Professional Planner.
“We are doing work with consulting actuaries on that particular issue,” replied Mr Sullivan.
He said that while pandemics were generally excluded from insurance contracts because of their sheer size it was an issue that a number of jurisdictions were “coming to grips with”.
The ICA is working with independent actuarial and analytics firm Finity to find out “what a particular approach might be to cover an insurance event like a pandemic”, Mr Sullivan said.