Following the declaration of a La Nina weather pattern by the Bureau of Meteorology, the Insurance Council of Australia (ICA) says now is the time to prepare property for what is expected to be a wet spring and possibly summer across eastern Australia. This comes as insurance claims continue to mount from recent floods (BOM).
For eastern Australia, the forecast La Nina would be the third in succession.
In 2021 and 2022, La Nina precipitation patterns caused widespread devastation in southeast Queensland and New South Wales. More than 296,000 insurance claims have been filed for storms and flooding caused by La Nia on the east coast in 2021 and 2022, totaling A$5.92 billion ($3.95 billion).
ICA CEO Andrew Hall said, "The past few years have demonstrated the effects that extreme rainfall can have on property, livelihoods, and our own health.
"We cannot control the weather, but there are things we can all do to decrease the risk posed by storms and floods and facilitate recovery from these catastrophes."
The ICA has provided property owners with a list of measures they can take to be better prepared for the BOM-predicted severe rainfall.
With the Bureau of Meteorology indicating that a third La Nina system is anticipated over the summer months, the data analytics firm Decision Inc Australia advises small companies to anticipate premiums to remain elevated for the foreseeable future as insurance providers seek to maximize profits.
Decision Australia uses statistics from the Australian Prudential Regulatory Authority (APRA), which regulates general insurance businesses, and the Bureau of Meteorology (BOM) to demonstrate that the value of written premiums and annual national precipitation have increased in tandem since 2019.
Gross written premiums increased from A$8.3 billion in 2019 to A$8.9 billion in 2020 and A$10.4 billion in 2021, according to the company.
During the same time frame, national yearly precipitation increased by roughly 70%. Much of this rise can be traced to the La Nina weather occurrences of the past two years, which have contributed significantly to heavy precipitation and floods along the east coast.
Mr. Aiden Heke, chief executive officer of Decision Australia, stated, "As climate impacts increase, so do premiums."
As small businesses prepare for the possibility of another wet season — and the chance of soaring insurance premiums — Australia's financial regulators, such as the Australian Prudential Regulation Authority (APRA), are examining how climate risks are likely to protect the economy. Initial studies indicate a concerning trend among underinsured enterprises.
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