IAG, Australia’s leading general insurer, which includes brands such as NRMA Insurance and CGU, has released a comprehensive report calling for greater consideration of disaster resilience in all land use planning decisions to reduce community disaster risk and maintain insurance affordability.
The report, ‘Addressing Resilience in Land Use Planning’, commissioned by IAG and conducted by AECOM Australia, identifies six challenges facing Australia’s land planning system. It also makes 10 recommendations to help decision-makers formulate more robust and resilient land use strategies.
“This report is part of a trilogy of key research reports we’ve released over the past 18 months as we seek to chart a way forward to reduce the risk of natural disasters and ensure the continued availability and affordability of insurance,” said Andrew Dyer, Manager, Land Planning Hazards and Regulatory at IAG.
Gaps in land use planning
The report highlights the inadequacies of Australia’s current land planning system, suggesting that it fails to adequately assess natural disaster risk and future climate risk. It argues that a paradigm shift is needed to protect communities in the future.
IAG’s Executive Manager Natural Hazards, Mark Leplastrier, who leads the in-house natural hazards research team, said land-use planning must improve the resilience of individuals, communities, organisations and assets as climate change continues to increase the frequency and severity of natural disasters.
“How we plan and manage development has a direct impact on the exposure and vulnerability of our communities to natural hazards,” he said. “We need to rethink how natural hazards and climate risks are considered in land-use decisions. Our planning system needs reform to protect communities in the future and keep insurance affordable.”
Key recommendations
The report draws on insights from experts across the land planning system, including all levels of government, industry and developers. It warns that Australia is approaching a critical juncture where the resilience of communities and systems to the risks they face is declining.
The report’s key recommendations include
- Collaboration between the insurance industry and federal and state governments to develop natural hazard risk tolerance guidelines for land use planning.
- Developing a program for local governments to build resilience in land use planning, prioritising the most vulnerable communities.
- Establish a legislative framework by state governments to activate and fund expedited approvals for proposed relocation, including rezoning and subdivision, following a disaster event.
- Collaboration between state governments and local councils to create a natural hazard risk database for properties to better inform purchase implications.
“It is time to stop putting communities at risk. Now is the time for collective action as climate change increases the frequency of many of these impacts,” said Dyer.
In other news, IAG joined the Federal Government’s Cyclone Reinsurance Pool last month.
