Australia’s insurance industry has proposed a $30 billion fund to protect some of the country’s most flood-prone areas.
In its policy recommendations in the lead up to the Federal Election, the Insurance Council of Australia (ICA) has called for a Flood Defence Fund (FDF) to protect the country’s most at-risk catchments in Queensland, New South Wales and Victoria.
ICA CEO Andrew Hall said the $30.15 billion investment over 10 years would be funded the Federal Government and the State Governments of New South Wales, Queensland, and Victoria, “which are the jurisdictions with the most high and extreme flood-exposed properties”.
Mr Hall said the FDF could deliver new critical flood defence infrastructure, strengthen properties in harm’s way, help local Government undertake managed relocation and future-proof existing flood mitigation infrastructure.
He said flood was Australia’s costliest extreme weather type, but of the 1.36 million properties facing flood risk in Australia it was estimated that more than half did not meet modern flood resilience planning and building standards.
“Around 298,000 of these properties – 225,000 homes and 73,000 businesses – face at least a two or five per cent chance of flooding each year.”
Mr Hall said the FDF was a big idea to confront a big problem, that was predicted to worsen with a changing climate and growing population.
“The floods of February-March 2022, three years ago this week, caused the loss of 23 lives, devastated communities, and saw insured losses of almost $6.4 billion.
“Striving to protect our communities against a repeat of this level of devastation should be the priority of every policymaker.”
Mr Hall said insurance premiums had risen over the past few years through a perfect storm of high inflation, taxes and regulations, extreme weather events and ever-increasing risk factors.
“In a cost-of-living crisis, it is important that all our efforts go into measures which will bring downward pressure on premiums, and this can only be achieved through a strong partnership between insurers and governments.”
Download: Advancing Australia’s Resilience. Policy recommendations for the next Australian Government.
