The Cost of Floods in Australia

THE RISKS & COSTS OF NATURAL DISASTERS IN AUSTRALIA The risk of natural disasters occurring in Australia is increasing 472% 71 *since records began in 1967 Insured Losses >10M = Disaster* *as defined by the Insurance Council of Australia 44 LOSSES = 30 $10M 21 1967-1976 1977-1986 1987-1996 1997-2006 1965 1970 1975 1980 1985 1990 1995 2000 2005 Rising risks result in rising costs As the risk for natural disasters escalates, costs to government, individuals and communities also RELIANCE ON GOVERNMENT AID increase dramatically (higher government spending and higher insurance premiums on NO INSURANCE OR UNDER-INSURANCE PRESSURE ON recovery costs) COMMUNITIES Inadequate insurance costs individuals, communities and governments HIGHER PREMIUMS HIGH RECOVERY COSTS HIGH RISK Insurance can protect the individual, but not the community. FLOODS One of the costliest natural hazards in Australia TOTAL property loss since 2000 caused by flood cost: $43.5 billion. INSURED property loss costs since 2000 caused by flood costs: $3.5B LOSSES =$3.5 B LOSSES = $43.5 B x3 3 Worst Floods 2010 2011 2013 DEC JAN FEB Brisbane/South East Queensland floods JAN Eastern Australia floods Victorian floods JAN MAR APR FEB 2011 DAMAGES DAMAGES DAMAGES $2.38B O $2B $2.4B 38 FATALITIES 2 FATALITIES 6 FATALITIES INSURANCE CLAIMS INSURANCE CLAIMS INSURANCE CLAIMS $ 38,460 $ 56,791 9 28,000 WORTH WORTH WORTH $ $1.51B $ $836.1M $ $187M A national coordinated effort is needed to reduce the impact of floods GOVERNMENT Focus on disaster risk reduction strategy Investment in flood mitigation is low and should be increased as every $1 invested in flood mitigation saves $2.10 in future spending on disaster recovery INSURERS Focus on educating importance of insurance COMMUNITIES Understand and act when there is an imminent flood danger INDIVIDUALS Focus on ensuring they have sufficient insurance cover and adequately protect yourself against harm that can be caused by rising flood waters. Australians need to be informed and empowered to make smart decisions Stay tuned to local radio for updated advice. Turn off your power, water and gas. TIPS FOR Know your nearest safe high ground and the safest access route to it. Don't drive through flooded ground. FLOODS Prepare an emergency kit and keep it in Check that your insurance covers a safe and secure place earthquake damage. Data source: Suncorp's "Risky Business: Insurance and Natural Disaster Risk Management" report 2013. http://www.suncorpgroup.com.au/sites/default /files/pdf/news/Risky%20Business%20Paper%20- %20Suncorp%20Group%202013.pdf Infographic created by www.curatedcontent.com.au CURATED CONTENT