Insurers in Australia are urging legislators to set up a 30 billion Australian dollar ($21.4 billion) flood defense fund as the nation grapples with surging costs from extreme weather events.
Funding would be used on tasks including the addition of more flood-protection infrastructure like dams or levees, and also for a AU$10 billion property buyback program targeting the estimated 10,000 dwellings in areas where it isn¡¯t possible to mitigate flood risks, the Insurance Council of Australia said Sunday in a statement.
Prime Minister Anthony Albanese¡¯s government has options ¡°to alleviate premium pressure for the highest risk households in the short-term, while making longer-term investments in large scale infrastructure and risk mitigation projects,¡± Andrew Hall, the council¡¯s executive director, said in the statement.
Insured losses from natural catastrophes globally reached $107 billion last year, according to reinsurer Swiss Re. Rising premiums are driving some households to drop coverage, while insurers are also withdrawing service entirely from some high-risk areas.
From 2019 to 2024, insured losses to extreme weather events averaged $4.5 billion a year in Australia, roughly two-thirds higher than in the previous five-year period, according to the council¡¯s statement.
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