The Insurance Council of Australia (ICA), which has been calling on all Australian governments to make the country more resilient to extreme weather events, has welcomed Labor's promise to provide Western Sydney with a flood package.
Western Sydney is one of the most flood-prone areas in Australia, with some residents having experienced flooding four times in the past two years. Considering this, Labor has vowed to invest $225 million to make the area more resilient to flooding if elected.
The flood package, announced by New South Wales (NSW) Opposition Leader Chris Minns, includes a plan to invest $24 million to protect communities from large-scale flooding by building new levees at Peachtree Creek, McGraths Hill, and Pitt Town.
Commenting on the Western Sydney flood package, ICA CEO Andrew Hall said Labor's promise shows that political stakeholders heed insurers' resilience message over the years.
“New South Wales is the highest-taxing state in the country when it comes to insurance, which drives down adequate coverage at a time and in a state where we need it most,” Hall said. “In the lead-up to next March's state election, the Insurance Council and insurers are calling on all parties to commit to abolishing this retrograde impost.”
The February-March 2022 flood was Australia's costliest flood and its third-costliest natural disaster. Meanwhile, the floods that impacted parts of NSW earlier this month have resulted in $145 million in damages and hit Western Sydney. Additionally, NSW is the only mainland state to levy insurance customers to fund emergency services, adding 30% to 40% to premium costs and driving down levels of insurance coverage.
The ICA's “Building a More Resilient Australia” report, released early this year, called for a $532 million local infrastructure fund to invest in projects such as levees, seawalls, and floodways across the country. NSW is the only mainland state to levy insurance customers to fund emergency services, adding 30% to 40% to premium costs and driving down levels of insurance coverage.
In a recent statement, Hall said: “We look forward to the New South Wales Government's response to the O'Kane / Fuller inquiry into the February-March floods, which must include significant investment in resilience measures and changes to land use planning.”
