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Wednesday, 22 January 2025
The Insurance Council of Australia (ICA) today expressed its approval regarding the commencement of the third phase of funding from the Federal Government’s $1 billion Disaster Ready Fund, which aims to better shield communities from the physical, economic, and social repercussions of intensifying extreme weather occurrences.
The Fund’s annual investment of $200 million is vital for tackling the escalating threats of bushfires, flooding, and cyclones, exacerbated by a changing climate, surging asset costs, and population growth in high-risk regions.
Insurers have consistently advocated for increased investment in substantial resilience infrastructure that mitigates hazard risk. This is evident in the revised funding distribution, with $138 million of the $200 million fund now allocated to essential mitigation infrastructure.
Increased governmental investment in public infrastructure designed to safeguard communities from extreme weather impacts, bolstered by contributions from Federal and state governments regarding disaster funding, is essential to alleviate the burden on insurance premiums to help bridge the protection gap.
Quotes ascribed to ICA CEO Andrew Hall:
The recent catastrophic bushfires in LA remind us of the necessity of investing in robust resilience infrastructure and strategies that diminish risk and enhance the safety of our homes and communities.
Intelligent land use planning and constructing more resilient homes suitable for Australian conditions is the only viable approach to temper rising insurance premiums in high-risk locations.
Insurers appreciate the strong emphasis on resilience infrastructure investment in the third phase of the Disaster Ready Fund. We anticipate continuing to collaborate with the government in directing resilience investment to Australians who are most in need, through the internationally recognized Hazards Insurance Partnership (HIP), and we hope to see the Disaster Ready Fund extended into a ten-year rolling program.
Long-term additional funding will be necessary, as the longer investment is postponed, the more expensive it will become for the nation.
This webpage was generated automatically; to view the article in its original source, you can visit the link below:
https://insurancecouncil.com.au/resource/federal-governments-ongoing-investment-in-resilience-is-critical-to-better-protecting-communities-from-rising-risk/
and if you wish to remove this article from our website, please reach out to us
