Flood Insurance: CivicRisk Mutual Secures Unparalleled Flood Coverage for Members

Intro

Extreme weather events are on the rise across Australia, making it increasingly challenging for local councils to protect themselves from floods.

While local governments across the country struggle to secure flood insurance, CivicRisk Mutual provides ongoing protection for members. This case study explores how the Mutual leveraged its collective power to secure competitive and genuinely beneficial flood coverage for member councils.

The Challenge: Flood Protection Dries Up

Following catastrophic flood events in 2022, which took a heavy toll on member councils like Hawkesbury City Council, Penrith City Council and Camden Council, the traditional insurance market became a restrictive option for flood cover.

Insurers attempted to impose strict coverage limits on members in high-risk flood zones. These restrictions left vulnerable councils facing the prospect of inadequate financial protection against future disasters.

The Solution: Bringing Collective Power to the Table

Rather than allowing insurers to isolate and penalise individual high-risk councils, CivicRisk Mutual brought the strength of its entire member force to the negotiation table. The Mutual pushed back against insurers with a unified ultimatum: The coverage had to be all-in for every single member, or the Mutual would take its business elsewhere.

The Outcomes: Continued Coverage for All Members

The bold negotiation tactic worked; CivicRisk Mutual successfully maintained strong, comprehensive cover for all its members, including those in high-risk flood zones.

In a previous conversation with Vaughan Macdonald, General Manager at Richmond Valley Council, he said that following the Northern River Floods, his council secured ongoing flood cover and remained protected against future events.

 “We highly value the responsiveness — no questions asked — and the benefits of that recovery support remain,”

Vaughan Macdonald, General Manager at Richmond Valley Council

Members now receive $4 million in coverage per event. During a single year, one member council was impacted by three separate events, all covered by CivicRisk Mutual’s flood insurance. By contrast, many other councils throughout Australia are still denied the protection they need to recover from flooding. 

CivicRisk Mutual emerged from the crisis with “flood cover that’s better than any other councils across Australia,” as Andrew Armitstead, CEO of CivicRisk Mutual, puts it.