Flood Damage: A Disproportionate Risk to Known Exposure

9

The information on this website is general in nature and does not take into account your objectives, financial situation, or needs. Consider seeking personal advice from a licensed adviser before acting on any information.

Australia has over 674,000 properties facing a risk of 1-in-100, 1-in-50, or 1-in-20-years. Out of these, 229,455 properties are at a 1-in-20-year risk, equivalent to a 5% annual exceedance probability.

Andrew Hall, CEO of the ICA, expresses the industry's commitment to improve flood response and appreciates the opportunity to submit their findings to the House of Representatives economics committee.

"Our data analysis also reveals that flood damage is wildly disproportionate to the number of exposed properties. By focusing our mitigation efforts on the most affected areas, we can alleviate the burden for everyone," says Andrew Hall, ICA CEO.

Floods often lead to costly insurance claims and have been the primary cause of losses in recent years, mainly due to weather conditions influenced by climate drivers that cause increased rainfall in eastern Australia.

An analysis of the National Flood Information Database shows that more than half of the properties at a 1-in-20-year risk are located in New South Wales, with the majority of the remaining properties in Queensland and Victoria.

The ICA's submission to the committee inquiry on insurers' responses to last year's floods announces the release of a series of policy papers in the coming months. These papers will examine the nation's "protection gap" and affordability of insurance coverage.

In their submission, the ICA highlights key findings from the recent Deloitte report commissioned by the industry, focusing on the floods that occurred in NSW and Queensland in February and March. The report includes recommendations that have been accepted in principle by the ICA.

The ICA emphasizes the need for action to reduce risks, including increased spending on resilience, improved land use planning, and reforms to building codes. Additionally, they draw attention to the impact of insurance taxes on premiums.

The final report from the inquiry is expected by the end of September next year. A hearing, originally scheduled for Wednesday, has been postponed to the new year.

Published:Tuesday, 5th Dec 2023
Source: Paige Estritori

Please Note: If this information affects you, seek advice from a licensed professional.

Share this news item:

Insurance News

Clear

Bupa's Strategic Expansion into Mental Health Services

29 Jan 2026: Paige Estritori

Bupa, a leading health insurer in Australia, has unveiled plans to significantly enhance mental health services by establishing a network of clinics named Mindplace. This initiative aims to open 60 clinics nationwide by 2027, aligning closely with the government's objective of operating 61 walk-in Medicare Mental Health Centres by mid-2026. - read more

Federal Support Secures Cohealth's GP Services Amid Financial Strain

29 Jan 2026: Paige Estritori

In response to financial challenges faced by Cohealth, a non-profit community health service, the federal government has allocated $1.5 million to maintain its GP services in Melbourne's inner north and west. This funding ensures that clinics in Collingwood, Fitzroy, and Kensington will remain operational until 31 July 2026, providing essential care to approximately 12,500 patients who were at risk of losing access to their GPs. - read more

Rising Out-of-Pocket Costs Challenge Australia's Universal Healthcare

29 Jan 2026: Paige Estritori

Patients Australia, in collaboration with La Trobe University, has released the 2025 Patient View Report, shedding light on the increasing financial burden faced by Australians seeking healthcare services. The report indicates that 62% of patients incur out-of-pocket expenses when visiting their GP, with nearly half of these individuals paying an average gap fee of $51 or more. - read more

Australian Insurers Adapt Investment Strategies Amid Geopolitical and Economic Changes

29 Jan 2026: Paige Estritori

Australian insurers are actively revising their investment portfolios in response to evolving geopolitical events and a stabilizing economic environment. A recent report by Janus Henderson Investors reveals that 47% of insurers plan to increase their investment portfolio risk in the next 12 months, with a significant focus on private markets. - read more

Mandatory Professional Indemnity Insurance for NSW Builders by 2026

29 Jan 2026: Paige Estritori

Registered building practitioners in New South Wales are facing a critical deadline to secure professional indemnity (PI) insurance by July 1, 2026, in accordance with the Design and Building Practitioners Act 2021. This legislation, which originally set a 2025 enforcement date, has been extended by 12 months to allow the industry additional time for preparation. - read more

Click for more Insurance News