Australia's insurance council hails A$400m in extreme weather protection

From 2019 to 2020 alone, bushfires caused AU$13b in damage.

The Insurance Council of Australia (ICA) hailed the AU$400m investment in 187 resilience and mitigation projects as a milestone in safeguarding vulnerable communities from extreme weather risks.

The Federal Government's AU$200 million Disaster Ready Fund (DRF), along with contributions from states and territories, marks a significant step in enhancing community resilience against extreme weather, said the ICA. 

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Extreme weather events since the 2019 to 2020 bushfires have resulted in a staggering damage bill surpassing AU$13b. 

Insurance payouts reached a record high in 2022, reaching nearly AU$7 billion in claims related to extreme weather.

In light of the persistent climate change threat, the ICA is urging an extension of the DRF to a 10-year rolling program. Additionally, they emphasise the importance of indexing the funding to prevent a decline in real value over time.

“An ongoing DRF would ensure that Australians receive the benefits of resilience and mitigation investment for years to come and allow governments and communities to plan for long-term projects.” the DRF said in an announcement.