More extreme weather on Australia's radar
- news.com.au
- January 4, 2012
Almost 100% of natural disasters in Australia are weather related, according to Insurance Council Australia. Picture: AFP
- IAG warns of more natural disasters
- Australia to be hard hit by climate change
- Brace for more insurance premium hikes
THE nation's largest insurers have warned Australians to brace for more catastrophic weather brought on by a rising global temperatures.
Last year, Australia and New Zealand accounted for more a third of world’s natural disaster insurance costs, with $22 billion in losses from the Queensland floods and Christchurch earthquake alone.
And Insurance Australia Group expects this figure to continue to rise as floods, fires, heatwaves and drought take a greater toll on Australians.
IAG, which owns brands such as CGU and NRMA Insurance, also expects to see an increased number of cyclones in the comings years - including some in southern Australia, which has previously been a rarity.
“Australia is likely to be one of the countries most affected by climate change, with more than 80 per cent of the population residing within 50 kilometres of the coast,” IAG said.
“These communities are particularly exposed to some of the most damaging extreme weather events such as cyclones, storms, hail and flooding.”
Almost 100% of natural disasters in Australia are weather related, it said.
After last year's widespread flooding, the federal government called on the Productivity Commission to inquire into the barriers to effective climate change adaption.
In response IAG has called for new building codes and land use rules to prevent developments vulnerable to damage from extreme weather.
It warns that without appropriate adaption to climate change, the cost of insurance will become out of reach for some consumers and cause insurers to withdraw from high risk locations.
“A changing, less predictable climate has the potential to reduce insurers' capacity to accurately assess, price and spread weather-related risk," IAG said.
Meanwhile, a Canstar Cannex report on insurance reveals the average home and contents premium for a typical householder rose 12%, or about $140, last year.
But some premiums in disaster hit areas surged as much as 40% last year, a price jolt of $400 for a typical home and contents package covering a $300,000 building and $75,000 in belongings.
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