Australia reconsiders housing development to lower insurance costs

In light of increasing natural disasters, experts are urging a re-evaluation of building practices in Australia. Recent events, such as Cyclone Alfred, have revived concerns over the safety and financial implications for communities already affected by previous disasters. Lismore, a town in northern New South Wales, is still recovering from devastating floods in 2022. As they faced another cyclone warning recently, Mayor Steve Krieg expressed feelings of anxiety among residents. Many are still struggling with the aftermath of losing their homes. Cyclone Alfred, which was downgraded to an ex-tropical low, is expected to cost the economy $1.2 billion and lead to nearly $2 billion in insurance claims, with about 75,000 claims already filed—mostly from Queensland. Insurance premiums have risen substantially and are becoming a focal point in upcoming federal elections. Climate change is worsening the frequency and intensity of disasters, with significant portions of Australian properties at risk of flooding. Experts stress the need for better planning and regulations to prevent building in high-risk areas. Professor Jago Dodson emphasized that planning must prioritize safety over development interests. He called for improved coordination between government bodies and more rigorous assessment of flood risks in housing decisions. Insurance companies, which have faced heavy claims in recent years, are being urged to consider discounts for homes that have been upgraded to handle flood risks better. Many homes in flood-prone areas lack adequate insurance coverage, partly due to high costs, which impact lower-income families the hardest. As Australia learns from past disasters, it must invest in preventive measures rather than solely focusing on recovery. Local councils are beginning proactive measures, such as improving stormwater drainage systems, to lessen future impacts. The government has also introduced a Disaster Ready Fund, providing resources for resilience projects and potentially lowering insurance premiums for affected homeowners. Long-term, officials believe that better planning and building practices will help protect communities and manage insurance costs effectively.