Focusing primarily on the threats posed by climate change to residential properties, the agency predicts that within the next five years, an additional 589,000 homes could face high risks of becoming uninsurable mainly due to the increasing threat of floods. The agency's chair, Matt Kean, pointed out the recent floods on the NSW Mid North Coast as indicative of future challenges, underscoring the urgent need for policy changes and stricter building codes, especially in areas of coastal Queensland and Western Australia that might soon require cyclone construction standards.
The report praises the frameworks outlined in the government's National Adaptation Plan as critical steps but insists further actions are necessary to adequately address Australians' needs. It advocates for increased coordinated investment in infrastructure and services which can provide additional benefits, such as reducing energy and insurance costs, alongside risk mitigation.
Emphasizing the necessity of up-to-date building standards, Kean affirmed the importance of taking practical steps to enhance Australia's resilience to climate change. He noted that investing in risk reduction is financially prudent, potentially saving up to $11 in recovery costs for every dollar spent.
The authority also highlights the importance of educating households about climate risks, enabling Australians to make informed decisions regarding property investments, rebuilding, or relocation following climate-related disasters, and implementing risk reduction strategies for their homes.
The Insurance Council of Australia has endorsed the report, applauding its practical and achievable recommendations. The council stated that these recommendations align with the long-term advocacy efforts of the insurance industry to bolster Australia's resilience in the face of climate change challenges.
