ICA seeks 10-year rolling disaster resilience funding program

ICA has requested that funding for the Disaster Ready Fund (DRF) be extended past the five-year budgeted commitment to a 10-year rolling program to better protect communities from the impact of extreme weather conditions. 

The ICA welcomed the establishment of the DRF in the October budget. The DRF provides up to $200 million annually to be invested in disaster mitigation for five years from next financial year.   

However, given the impacts of recent extreme weather events and the ongoing threat of climate change, the ICA is calling for this funding to be extended to a 10-year rolling program.  

An ongoing DRF would ensure that Australians receive the benefits of resilience and mitigation investment for years to come and allow governments and communities to plan for long-term projects that put downward pressure on insurance premiums.  

To ensure the funding does not fall short in real terms because of rising inflation, the ICA is also calling on the Government to index DRF funding. A 10-year indexed program would cost the budget about $2.5 billion over the medium term, $1 billion less than the cost of disaster recovery payments and allowances in 2022 alone.   

Further details are available on the ICA website, www.insurancecouncil.com.au