The Insurance Council of Australia (ICA) has welcomed the confirmation of $741m in additional funding to better protect Queensland homes and communities from the impacts of extreme weather that was handed down in the State Budget this week.
According to the ICA, the Government’s commitment to additional funding, co-funded by the Federal Government, matches the amount called for by the Insurance Council in its Building a more resilient Australia report released in February.
Andrew Hall, CEO of the ICA, said: “The ICA commends the Palaszczuk Government for this very significant increase in resilience funding, made in response to the devastating floods experienced in South-East Queensland in February and March this year.”
He added: “Last year the ICA was critical of the Government’s Budget for its lack of funding in this area, but it’s clear that this has not been reversed. Queensland is now leading the nation in terms of resilience and mitigation funding which is critical given the State’s exposure.”
The ICA said earlier this month that there had been a 28% rise in the cost of the severe flooding across Southeast Queensland and Northern New South Wales earlier this year, making it the country’s fourth costliest natural disaster event.
As of Tuesday May 31st, 2022, insurance and reinsurance industry losses from the floods are estimated at $4.3bn from a total of 216,465 claims.
According to the ICA, the 28% rise in claims cost from April’s figures is mostly down to the progression in the claims assessment process and a rise in commercial claims.
The ICA welcomed the extension of the Queensland Government’s $13.1m Resilience and Risk Reduction Fund to support disaster mitigation projects and build resilience to worsening extreme weather in the State. The budget also includes a welcomed $170m to build essential public infrastructure such as roads, bridges, causeways and culverts back to standard.