The Insurance Council of Australia (ICA) and the Planning Institute of Australia (PIA) are advocating for urgent land-use planning reforms to mitigate risks associated with natural disasters.
The call comes amid rising concerns over the impact of extreme weather on communities and housing.
Research commissioned by the ICA, conducted by the Centre for International Economics, suggests that enhancing the resilience of new homes could result in annual savings of approximately $4 billion, including $2 billion from reduced cyclone damage, $1.5 billion from flood damage, and $500 million from bushfire damage.
A separate analysis by the McKell Institute in 2022 estimated that the cost of extreme weather events could increase by 5% annually, potentially reaching $35 billion per year by 2050, adjusted to 2022 dollars.
During the 2024 National Industry Roundtable: Land Use Planning and Resilience, held in Brisbane, experts from various sectors – including government, financial services, property, and community organisations – emphasised the need for immediate reforms.
The event, co-hosted by the ICA and PIA, underscored the importance of aligning industry and government efforts to safeguard lives and properties from natural hazards such as floods, bushfires, and cyclones. A key focus was on directing new developments to areas with lower risk profiles.
The roundtable led to the release of a joint communique, which outlined several recommendations to improve land-use planning in the context of extreme weather. These recommendations include:
Commenting on the discussions during this year’s National Industry Roundtable, ICA CEO Andre Hall emphasised that the increasing frequency and severity of disasters – coupled with population growth and the expansion into high-risk areas – are introducing more risks into the Australian financial system and engaging communities.
“We must urgently reduce risk where we can and ensure that our planning systems are robust and forward-looking to protect our communities and assets,” he said.
PIA CEO Matt Collins stressed the significance of effective land-use planning in enhancing community resilience to natural disasters.
“Good land-use planning can help make our communities more resilient to natural disasters, so [it is] critical that planners have the tools we need, like up-to-date mapping and modelling,” he said.
He further emphasised the need for comprehensive strategic plans that clearly identify areas where development is not advisable due to unmanageable risks from hazards such as floods and fires.
“The decisions we make on where to live and invest in the future should use the best available data and modelling, and we need governments to invest in these critical inputs,” he added.
The roundtable comes on the heels of the renewal of the longstanding alliance between the ICA and Fire and Rescue NSW to boost fire safety initiatives across the state.
