Flood Damage: A Disproportionate Risk to Known Exposure

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

ATA Challenges Productivity Commission's Proposal to Double Truck Fuel Tax

01 Mar 2026: Paige Estritori

The Australian Trucking Association (ATA) has expressed strong opposition to the Productivity Commission's proposal to more than double the tax on truck fuel. The plan suggests phasing out fuel tax credits for trucking operators, effectively increasing the fuel tax rate from the current 32.4 cents per litre to 66.1 cents per litre by 2035. - read more

PERILS Revises Loss Estimate for November 2025 Storms in Queensland and NSW

01 Mar 2026: Paige Estritori

In a recent update, catastrophe data provider PERILS has increased its insurance industry loss estimate for the severe convective storms that struck Queensland and New South Wales between November 21 and 27, 2025. The revised estimate now stands at AU$2.95 billion, marking an 11% rise from the initial figure of AU$2.663 billion released in January 2026. - read more

Federal Court Denies Truck Driver's Insurance Claim Against Superannuation Fund

01 Mar 2026: Paige Estritori

In a recent legal decision, the Federal Court dismissed a truck driver's insurance claim against the Australian Retirement Trust. The case centred on whether the driver had active insurance coverage through his superannuation account, particularly concerning the 'dangerous occupation exception.' - read more

AIA Australia Introduces Enhancements to Priority Protection Life Insurance

28 Feb 2026: Paige Estritori

AIA Australia has announced significant updates to its Priority Protection life insurance suite, effective from 9 November 2025. These enhancements are designed to simplify discounts, improve policy clarity, and support premium affordability for policyholders. - read more

Decline in Life and Income Protection Insurance Premiums Benefits Australians

28 Feb 2026: Paige Estritori

Recent data indicates a notable decline in life and income protection insurance premiums across Australia, providing consumers with more affordable coverage options. According to the latest Direct Life Insurance Report from Rainmaker Information, direct life premiums have decreased by 7% since 2024. Similarly, direct income protection premiums have seen significant reductions, with average premiums for waiting periods of 30 days and 90 days decreasing by 12% and 13%, respectively. - read more

Click for more Insurance News