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Building resilience

Federal Government’s ongoing investment in resilience is critical to better protecting communities from rising risk

January 22, 2025 by Shannon White

Home Building resilience

Federal Government’s ongoing investment in resilience is critical to better protecting communities from rising risk

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News release

Wednesday, 22 January 2025

The Insurance Council of Australia (ICA) today welcomed the opening of the third round of funding from the Federal Government’s $1 billion Disaster Ready Fund, aimed at better protecting communities from the physical, economic, and social impacts of worsening extreme weather events.

The Fund’s $200 million annual investment is crucial to addressing the rising risks of bushfire, flooding and cyclones, fuelled by a changing climate, the rising costs of assets, and populations expanding into high-risk areas.

Insurers have long called for greater investment in significant resilience infrastructure that drives down hazard risk. This is reflected in the updated funding allocation, with $138 million of the $200 million fund now dedicated to critical mitigation infrastructure.

Greater government investment in public infrastructure that protects communities from the impacts of extreme weather, supported by Federal and state government uplifts in disaster funding, is critical to reducing the pressure on insurance premiums to help close the protection gap.

Quotes attributable to ICA CEO Andrew Hall:

The recent devastating bushfires in LA serve as a reminder of the importance of investing in hard resilience infrastructure and measures that drive down risk and better protect our homes and communities.

Smarter land use planning decisions and building more durable homes for the Australian conditions is the only sustainable way to moderate rising insurance premiums in high-risk areas.

Insurers welcome the strong focus on resilience infrastructure investment in the third round of the Disaster Ready Fund. We look forward to continuing to engage with government on targeting resilience investment to the Australians who need it the most, through the world-leading Hazards Insurance Partnership (HIP), and hope to see the Disaster Read Fund extended to a ten-year rolling program.

More funding will be needed over the longer term, as the longer investment is delayed the costlier it will be for the nation.

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Advancing Resilient Nature Positive Insurance in Australia

October 3, 2024 by insuranceca

2024-25 Pre-Budget Submissions

February 1, 2024 by insuranceca

NSW Government action on Sydney floodplain development welcome

October 29, 2023 by insuranceca

Home Building resilience

NSW Government action on Sydney floodplain development welcome

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News release

Sunday, 29 October 2023

The Minns Government is to be commended for its decision to halt further development in parts of Sydney’s north-west due to flood risk, the Insurance Council of Australia (ICA) said today.  

This decision announced today in The Sunday Telegraph by Minister for Western Sydney Pru Car and Minister for Planning Paul Scully is clear and strong action that will protect families and businesses from future dangerous flood events. 

This is the first tangible decision by a State Government in response to the agreement by National Cabinet in 2022 that “the days of developing on floodplains need to end”.  

It follows advocacy by the ICA and other peak bodies such as the Planning Institute of Australia and Master Builders Australia for governments responsible for land use planning decisions to significantly strengthen the controls around developments on high-risk flood plains. 

Some residents of Western Sydney have experienced flooding four times in the past three years and the region is one of the most flood-prone in Australia.  

Quote attributable to ICA CEO Andrew Hall:  

“The Minns Government should be commended for taking such a critical decision which will put the safety and wellbeing of future Western Sydney communities first above all other demands. 

“This is a significant shift in thinking about how we make the region safer and improve its risk profile. 

“Insurers appreciate that Sydney is grappling with a housing crisis as the population surges, but repeating mistakes of the past through poor planning decisions would only condemn future generations to trauma and financial loss through devastating flood events while placing further pressure on all insurance premiums. 

“Western Sydney already is one of Australia’s most exposed and high-risk flood areas, due to the topography of the Hawkesbury Nepean basin.  

“To have allowed developments to proceed in these areas in full knowledge of the flood risk would have been unforgiveable. 

“It was never a question of whether these areas may flood; the science, data and modelling show we know they will flood – to put further housing in these areas of unmitigated flood risk would have been a terrible strategy.” 

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Future Proofing Australia’s Resilience

October 24, 2023 by Shannon White

Centre for International Economics (CIE) report

October 24, 2023 by Shannon White

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