Flood risk, insurance and emergency management in Australia

The recent flooding events in Queensland in 2011 and the recent flooding occurring in New South Wales in 2012 have exemplified the existence of institutionally entrenched inadequacies within the current insurance regulatory regime. The biggest manifestation is the high penetration of inadequate insurance coverage. The consequence of inadequate insurance is economic mayhem for those who have endured property losses arising from weather-related disasters. This paper reviews the lessons from the Queensland floods (December 2010 - February 2011) and identifies that two major issues are the cost and availability of flood cover. It is argued that if insurers assist with mitigation measures, by assisting home owners to understand and prepare for floods, they reduce the cost to insurers, and therefore of insurance, which will ultimately be a benefit for all.