A new report released today by the Insurance Council of Australia (ICA) estimates that the country’s governments will need to invest $30 billion in large scale coastal protection and adaptation projects over the next 50 years, in order to mitigate the effects of climate change.
With cover for actions of the sea largely unavailable, the ICA report recommends shifting focus towards mitigation efforts.
Furthermore it’s been recommended to improve and coordinate data collection by local, state and federal governments.
The ICA also suggests leveraging land use planning that considers actions of the sea, including long-term viability of existing communities or property.
The $30 billion investment has been calculated as representing 1.2% of the average yearly infrastructure spending by all local, state and federal governments.
Furthermore, the report finds that with this modest investment, significant returns can be realised through avoided damage and financial loss for individuals and avoided community economic loss due to disruption.
It’s noted that adaptive management and planned retreat from coastal hazard zones may be the best long-term community option.
Overall, the report finds that significant returns can be realised through avoiding damage and that the financial loss for individuals and avoided community economic loss due to disruption.
However, the Baird report finds there are limits to mitigation and in some cases adaptive management and planned retreat from hazard zones may be the best long-term community option.
The report recommends urgent action by federal and state governments to build a coastal hazard
information database to measure and monitor actions of the sea as sea levels rise.
“Legacy planning decisions by Australian governments have left some coastal communities, homes and infrastructure highly vulnerable to actions of the sea like tidal inundation and coastal erosion,” said ICA CEO Andrew Hall.
“It’s estimated that over the next 50 years governments will need to invest at least $30 billion in large scale coastal protection and adaptation projects as climate change makes actions of the sea worse.
“Insurers are generally not able to cover ‘actions of the sea’ because of the nature of the risk, but we can improve protections for communities and property owners by raising awareness of the risks, improving data and understanding, and advocating for investment in mitigation and adaptation projects.”
“The insurance industry stands ready to collaborate with governments to share our risk intelligence to help mitigate these growing challenges, for example working together to set robust land planning and building codes which play a critical role in reducing risk to property holders and enabling affordable insurance.”
