Climate change is occurring along a rapid and severe pathway, and without intervention it presents a serious risk to environments, economies and communities worldwide.
What are the insurance consequences of climate change?
As Australia warms, we can expect more frequent extreme natural hazard events; more bushfires, floods, hailstorms and cyclones.
This will lead to increased damage to our infrastructure, property and assets; insurance customers will need to claim on their insurance policies more frequently.
At present no region in Australia is uninsurable. However, it is possible some regions may become difficult to insure in the future unless governments invest in appropriate physical mitigation and adaptation strategies.
Implementation of stronger building codes, improved land-use planning and permanent physical mitigation measures, where necessary, will be key to ensuring an ‘Insurable Australia’.
Our Climate Action Plan
The role of general insurance is to assist policyholders to recover from losses, such as those caused by extreme weather events. With expertise in risk management developed over hundreds of years of operation, general insurers play a critical role in communicating, managing and responding to the natural environment risks that many policyholders face today, as well as how those risks may evolve under a changing climate.
We are working alongside the community, governments and other stakeholders to help ensure insurance remains affordable and accessible through physical adaptation measures and increased community resilience.
Establishment of Climate Change Action Committee
To achieve this, the ICA established a Climate Change Action Committee (CCAC) with a clear mandate. The CCAC operates as a member working committee reporting as required through ICA management to the ICA Board. The CCAC has an action plan with a clear mission:
“To take action that will assist and support Australia’s transition to a resilient and low carbon economy and continue to offer affordable and accessible insurance products in a climate changed future – An Insurable Australia.”
Projects and partners
The Climate Change Action Committee work is being delivered in collaboration with our stakeholders and partners through projects – see our project gallery below.
The ICA has three partnerships, each with a specific goal:
- Green Building Council of Australia Future Homes
- Minderoo Fire and Flood Mission
- Queensland Fire and Emergency Services
The ICA and its members have been signatories to the United Nations Principles for Sustainable Insurance since 2012.
