Australian and New Zealand Institute of Insurance and Finance CEO Katrina Shanks says there were “some tangible wins” in the federal budget – but its “limitations are just as important”.

Ms Shanks says $3.4 million to standardise natural hazard definitions and improve premium transparency “is a practical step towards addressing one of the industry’s longest-standing friction points”.

“Inconsistent terminology and unclear pricing drivers have contributed to confusion, disputes and ultimately underinsurance,” she wrote on LinkedIn.

“A common language, if implemented well, has the potential to improve consumer understanding and trust while sharpening underwriting clarity across the market.”

But she says despite “another severe summer” of natural disasters, “core resilience settings” remain largely unchanged.

“The cyclone reinsurance pool is untouched, the Disaster Ready Fund remains capped at $200 million annually, and funding adjustments elsewhere are marginal,” she said.

“At a time when catastrophe exposure is intensifying, the absence of expanded mitigation investment signals a continued reliance on post-event recovery rather than pre-event resilience.

“While the policy dial is moving, the underlying risks are moving faster.”

See ANALYSIS.