According to ICA’s proposal, the flood defence fund would be strategically allocated over a ten-year period, with financial responsibilities shared between federal, New South Wales, Queensland, and Victorian governments, as these areas have been identified with the highest flood exposure. The allocation plan includes $15 billion for new flood defence infrastructure, $5 billion to reinforce vulnerable properties, $10 billion for property buyback schemes, and $150 million invested in enhancing current flood mitigation infrastructure.
In addition to flood management, the ICA's platform outlines reforms across various areas, such as optimizing land use planning, introducing rigorous regulatory measures, enhancing building resilience, ensuring consistent investment in the Disaster Ready Fund, and addressing ongoing challenges within the motor repair sector.
As ICA CEO Andrew Hall articulates in the report’s introduction, the previous year saw Australia’s general insurance sector underpinning household and business stability with 41 million policies issued and claims exceeding $32 billion. However, he warns that escalating risks and costs are undermining the affordability and effectiveness of insurance, further compounded by the current cost-of-living crisis, which intensifies pressures on both families and businesses. Hall emphasizes that addressing these issues is imperative and requires decisive action.
The proposed fund is crucial as it directly addresses the financial burdens associated with flood damage, which can devastate community infrastructure, homes, and businesses. By investing in preventive and mitigative measures, the fund aims to reduce the frequency and severity of flood impacts, potentially lowering insurance premiums in high-risk areas and enhancing the overall resilience of Australian cities and towns.
If adopted, the fund could lead to substantial infrastructure projects in flood-prone regions, enhancing community protection and possibly setting a precedent for future climate adaptation policies. The insurance sector, along with state and federal governments, will need to collaborate closely to ensure effective implementation of proposed measures. Additionally, the emphasis on regulatory improvements and infrastructure resilience signals a broader push towards sustainable urban development, aligning economic security with environmental stewardship.
