IAG Urges Inclusion of Disaster Risk in Nationwide Land Planning

IAG report calls for disaster risk to be included in land planning decisions across all states and territories

IAG, Australia's largest general insurer with brands including NRMA Insurance and CGU, today released a report calling for disaster resilience to be a greater consideration in all land planning decisions to reduce disaster risk in our communities and keep insurance affordable.

The Addressing Resilience in Land Use Planning report, commissioned by IAG and undertaken by consultancy firm AECOM Australia, identifies six challenges facing Australia's land planning system and makes 10 recommendations to support decision makers in developing more robust and resilient land use strategies.

The report highlights that Australia's current land planning system doesn't adequately consider natural disaster risk or future climate risk and recommends that needs to change to protect communities in the future.

IAG Executive Manager Natural Perils Mark Leplastrier, who leads IAG's in-house natural perils research team said: "How we plan and control development directly impacts the exposure and vulnerability of our communities to natural hazards.

"As climate change exacerbates the frequency and severity of disaster events, land use planning systems must evolve to preserve the coping capacity of individuals, communities, organisations and assets."

"We need to rethink how natural hazards and climate risk are addressed in land planning decisions. Our planning system needs reform, to protect communities in the future and keep insurance affordable."

Mark Leplastrier

IAG Executive Manager Natural Perils

Consolidating expert viewpoints from across the land planning system, including all levels of government, industry and property developers, the report says Australia is reaching a tipping point where the capacity of communities and systems to be resilient to the level of risk they face is diminished.

Key recommendations in the report include:

  • The insurance industry, with Federal and State governments co-create a guideline on natural hazard risk tolerance for land use planning
  • Federal and State governments develop a resilience in land use planning capability program for local government that prioritises the most vulnerable councils
  • State governments develop a legislative framework to activate, and fund accelerated approvals for planned relocation including re-zoning and subdivision following a disaster event
  • State governments, in collaboration with local councils create a natural hazard risk database for properties to better inform purchase implications

IAG Manager Land Planning Hazards and Regulatory, Andrew Dyer said: "This report forms part of a trilogy of key research reports we've published over the past 18 months, as we seek to pave a pathway forward to reduce natural disaster risk and ensure the ongoing availability and affordability of insurance."

"It's time to stop placing communities in harm's way. The time for collective action is now as climate change increases the frequency of many of these impacts."

Andrew Dyer

IAG Manager Land Planning Hazards and Regulatory

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