Greater investment in disaster resilience is not only beneficial but essential, says Mark Milliner
From wild storms, to raging bushfires and devastating floods, our nation has seen it, suffered through it and worked together to help our communities get back on their feet.
It is heartbreaking to visit communities in the aftermath of a disaster and try to comfort individuals, families and business owners coming to grips with what has happened, physically and emotionally, as they take their first steps on the long road to recovery.
The human impacts are deep and long lasting, beyond the damage to buildings and infrastructure.
We can’t prevent nature from throwing its worst at us, but we can certainly do more to mitigate the impacts of natural disasters and build greater resilience in communities, so they become stronger and better prepared should they be impacted again in the future.
IAG is a member of the Australian Business Roundtable for Disaster Resilience & Safer Communities, together with the Australian Red Cross, Investa,
Munich Re, Optus and Westpac.
The Roundtable was formed in 2012 following an unprecedented level of extreme weather events in Australia caused recovery costs to exceed the historical average.
We have advocated for greater collaboration between all levels of government, business and local communities to help prioritise and action pre-disaster mitigation.
It is clear that the nation’s investment in recovery following natural disasters far outweighs its investment in mitigation.
Quite simply, the funding mix is wrong.
The Roundtable’s research has found that the total cost of natural disasters is expected to reach an average of $33bn annually by 2050.
Only $50m a year is spent on mitigation measures, with the average annual spend on recovery measures totalling $560m (2013). That means for every $10 spent on recovery measures, only $1 is spent on mitigation.
That’s despite successful mitigation initiatives having tangible impacts in reducing risk, making insurance more affordable and making communities safer.
Following extensive flooding in 2010 and 2011, local, state and federal governments worked together to deliver funding to build a levee in Roma, Queensland. Construction began in 2013 and was completed in 2015, protecting almost 500 homes.
The Roundtable’s analysis in 2013 found that without the introduction of pre-disaster mitigation initiatives, average annual flood costs in the Hawkesbury/Nepean region in NSW would triple from $102m in 2013 to $317m by 2050.
In June 2016, the NSW Government announced plans to investigate raising the height of Warragamba Dam in an effort to significantly reduce downstream flood risk.
The Government has confirmed the first stage of this mitigation project – $58m to improve flood risk awareness through evacuation signage, improved flood forecasting and integrating flood risk management into regional planning.
However, securing greater investment in mitigation will be a missed opportunity if we don’t share information on what measures work, and if communities don’t help develop solutions.
Do local planning laws and building codes outline where and how critical infrastructure is built in a cyclone, flood or bushfire prone area?
Or would local governments consider helping residents or businesses in a high-risk area relocate to a lower-risk area nearby?
These are questions we should help communities examine in the wake of Tropical Cyclone Debbie, where the response for areas such as Proserpine and Airlie Beach in Queensland will be different to the flood-affected towns of Lismore and Murwillumbah in northern NSW.
It is also critical we take a holistic approach to building resilient communities by examining long-lasting social impacts such as increased mental health issues, alcohol misuse, domestic violence, chronic diseases and unemployment.
More than one in every 10 people exposed to natural disasters are reported to develop psychological distress.
At IAG we have responded to this by developing a community connection program called ‘Good Hoods’, which links individuals and community groups with resilience-building ideas and initiatives across the nation.
In developing the program, more than 2,500 people were engaged from a cross-section of communities, with connection and belonging identified as major factors in helping to build greater resilience. It also delivers shared value for IAG through reducing the impact unexpected events have on customers and claims.
If our national investment in resilience continues to be well short of what’s required to seriously tackle the issue, the social and economic cost of future disasters will keep escalating.
We must work together as a nation to deliver greater mitigation measures for communities right across the country. Our way of life depends on it.
Mark Milliner is CEO – Australia of IAG. He joined the group last year, following two decades at Suncorp, where he held a number of senior roles, including CEO of personal insurance.
