Addressing ABC Radio National Breakfast, Dr Mulino highlighted the growing accessibility issue within high-risk insurance markets, emphasizing the need to analyze overseas schemes. He noted that the Hazards Insurance Partnership is already enhancing cooperation between the government and the industry in data sharing to support risk mitigation. However, a significant number of Australians remain unable to secure adequate insurance, prompting further investigation into international solutions.
The Minister pointed out that approximately 230,000 properties and between 60,000 to 80,000 small businesses are at flood risk, leading insurers to shy away from offering flood coverage as an optional add-on. This has resulted in an increasing number of households and businesses struggling to secure complete insurance coverage.
Having recently returned from a European tour engaging with major insurers like Lloyd’s, Munich Re, Swiss Re, Marsh McLennan, Aon, and Allianz, Dr Mulino stated it is premature to comment on the efficacy of these overseas schemes. Nonetheless, he believes that the diverse strategies observed could serve as a valuable evidence base for refining Australia's approach.
Dr Mulino also noted that the US implements flood schemes in certain regions such as California and Florida, though not all have yielded positive results. This complexity underscores the importance of a careful evaluation of each scheme’s impact before adaptation.
In Australia, the Insurance Council has proposed a comprehensive 10-year, $30.15 billion mitigation fund, advocating for it to be backed by federal and state governments from Queensland, NSW, and Victoria. There is also a call to ensure the $200 million annually allocated for the Disaster Ready Fund is both sustained and adjusted for inflation.
