Brokers touted to join class action

Brokers touted to join class action

Brokers touted to join class action

A financing firm is talking to "insurers, underwriters, brokers, reinsurers and agents" about joining forces over a class action to retrieve losses from the 2011 floods.

IMF are financing the initiative and seeking support from household owners and industry organisations alike.

Household flood victims who joined the class action would have to pay financing firm IMF 28% of any payout, while insurers and developers would pay only 22%, according to reports in The Courier-Mail.

John Walker, of IMF told the paper, the floods had cost the industry "billions" and he was talking to "insurers, underwriters, brokers, reinsurers and agents" about coming on board.

"Their support is not essential or critical, but, if it was provided, the claim will proceed," he said.

Suncorp, which paid out on thousands of flood insurance claims, has already said it had been approached but would not join.

IMF had collected about $1.2 billion for clients in the last 10 years and averaged a return on its investment of about 28%, Walker claimed. He expected a lower rate of return on the flood claim because of its large size.