Download a copy of the NIBA Broker Guide (Issue 5) – A sustainable future

The NIBA Broker Guides are brought to you through a partnership between Allianz Australia Insurance Limited (Allianz) and NIBA. We hope the knowledge of our subject matter experts, coupled with Allianz’s industry expertise, helps you and your clients prepare for the future.

The fifth issue of the NIBA Broker Guide focuses on a sustainable future and examines four major issues that can inform your conversations with clients – identifying strategies for resilience in the face of losses exacerbated by climate, what role building standards, and an alternative approach to land use might play, crucial issues facing the agricultural sector, and the benefits from modelling, monitoring, and measuring climate-related perils.

Weather hazards such as tropical cyclones, tornadoes, floods, hail damage, and bushfires are a constant threat, particularly at this time of year. More severe and frequent natural catastrophes have been irrefutably linked to climate change around the world and the effect on people’s lives and livelihoods can be devastating.

A sobering report^ released late in 2021 by the Australian Academy of Science talked about the risks of global warming
and climate change and achieving net-zero by 2050 as “an absolute minimum”, but there was one metric that proved particularly alarming, stating that “one in every 19 property owners face the prospect of insurance premiums that will be
effectively unaffordable by 2030”.

Brokers play a critical role here; they are at the intersection between client and insurer. Their knowledge of what the client
can achieve and what the insurer is looking for in terms of attractive risks, has never been more valuable.

Insurance has always been there to play its part, but it is not a substitute for individuals and businesses undertaking
meaningful measures to mitigate their risks. When we speak with our clients, we need to reiterate not only what we can do,
but when and where we need to do it. The time has come for action because all our futures depend on it.