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

Insuregroup's Remarkable Growth Reflects Surge in Truck Insurance Demand

07 Dec 2025: Paige Estritori

Insuregroup, a specialist insurance brokerage serving Australia's transport and logistics sector, has recently announced a significant milestone: processing over 10,000 insurance policies since its inception, with a 25% increase in policy volume over the past year. This growth underscores the escalating demand for comprehensive truck insurance solutions tailored to the unique needs of Australian freight operators. - read more

Envest Group Unveils TLI Underwriting: A New Era for Heavy Motor Fleet Insurance

07 Dec 2025: Paige Estritori

Envest Group, a prominent player in Australia's insurance sector, has announced the launch of TLI Underwriting, a new agency dedicated to providing specialized insurance solutions for heavy motor fleet operators. This strategic move aims to address the unique challenges faced by larger transport businesses in Australia. - read more

ASIC Initiates Legal Proceedings Against QBE for Alleged Misleading Discount Practices

07 Dec 2025: Paige Estritori

The Australian Securities and Investments Commission (ASIC) has commenced legal action against QBE Insurance, alleging that the insurer misled more than 500,000 customers regarding premium discounts over a five-year period. This development has significant implications for the Australian insurance industry, particularly for policyholders seeking transparency and fairness in premium calculations. - read more

Declining Construction Insurance Premiums: A Boon for Australian Tradies

07 Dec 2025: Paige Estritori

In 2025, Australia's construction insurance market has experienced a significant shift, with premiums decreasing across various lines due to intensified competition among insurers. This trend is particularly beneficial for tradespeople, commonly known as 'tradies,' who are witnessing more affordable coverage options. - read more

Upcoming Insurance Mandate: NSW Builders Must Act Before 2026 Deadline

07 Dec 2025: Paige Estritori

In a significant regulatory development, registered building practitioners in New South Wales (NSW) are now required to secure professional indemnity (PI) insurance by July 1, 2026. This mandate, stemming from the Design and Building Practitioners Act 2021, underscores the importance of comprehensive risk management for tradies operating within the state. - read more

Click for more Insurance News