Catastrophe events and the community
What are catastrophic events?
Catastrophe events are large natural or man-made disasters that cause a significant number of insurance claims in a region. The eight largest catastrophe events in Australia, in insurance terms are (in 2007 adjusted dollar amounts):
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No 1
28/12/89
Newcastle Earthquake
$4,300,000,000 |
No 2
24/12/1974
Cyclone Tracey - Darwin
$3,600,000,000 |
No 3
14/4/1999
Sydney Hailstorm
$3,300,000000 |
No 4
25/1/1974
Brisbane Floods
$2,100,000,000 |
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No 5
18/1/1985
Brisbane Hailstorm
$1,700,000,000 |
No 6
9/6/2007
Newcastle Storms
$1,500,000,000 |
No 7
16/2/1983
Victorian Bushfires
$1,300,000,000 |
No 8
7/2/2009
Victorian Bushfires
$1,009,000,000 |
More historical catastrophe data can be found by clicking here
Catastrophe events involving large numbers of claims, or complex issues, are coordinated through a general insurance industry taskforce that is established for each event and closed when the insured community recovery is completed.
What are the current catastrophe events? (July 2009)
As of July 2009 there are three active Insurance Taskforces established, each managing a separate event:
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Taskforce
Catastrophe 085
17/11/2008
Brisbane Storms
.. More Information .. |
Taskforce
Catastrophe 093
07/2/2009
Victorian Bushfires
.. More Information .. |
Taskforce
Catastrophe 095
14/4/1999
Sydney Hailstorm
.. More Information .. |
What types of natural catastrophe event could impact me?
Australia has a significant history of natural disasters – Some natural disaster can include the following:
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Bushfire – Most property losses occur in NSW, VIC and the ACT between September & March. With increasing urban development and a climate that is both getting drier and warmer, bushfires are an increasing risk for todays property owners.
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Cyclones – Most property damage occurs in Northern QLD and WA between December and April. Under climate change predictions, severe cyclones are expected to occur further south than at present.
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Hail – Hail is a very significant factor in insured losses. The worst affected states are NSW & QLD. The worst months for damaging hail are from October to April, though hail can occur at anytime.
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Flood – Inland flood is a significant issue in Australia, historically accounting for nearly 1/3rd of insured losses. From an insurance perspective the worst affected states are NSW & VIC, followed by QLD & WA typically occurring from April to October.
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Earthquake – Australia has a low incidence of highly damaging earthquakes. The most affected states are NSW & WA, with 4 significant earthquakes causing an insured loss occurring in the last 40 years.
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Severe Storms – The worst affected states are NSW & QLD, followed by WA, VIC, SA & TAS. The majority of severe storms have occurred between September & February
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What can I do to protect my assets from catastrophes?
Resilient Design and Planning – A property should be designed so that it is resilient to the hazards present in the environment, both today and into the future to the end of the expected life-span of the building. Property owners and developers should ensure that appropriate materials and design are employed to ensure that the property will survive the predicted intensity of natural hazards in their region into the future. It is important to note that minimum building standards in Australia do not cater for property protection, only safety, allowing occupants time to egress before a building constructed to a minimum standard becomes untenable. Considering a property purchase? – Ask the owner or designer about the standards used for construction and the local hazards.
Disaster Planning and Preparation – Consumers should have a relevant emergency plan for their location, designed not only to protect their safety in the event of a disaster, but to save your property where it is possible and safe to do so. Visit your state’s State Emergency Services website to gain more information about the hazards relevant to your area and what plans you can make now to lessen the impacts.
Financial Protection – Ensure that you insure - Appropriate insurance protection over your most important assets is critical to making sure that following an unexpected event you can return to a normal lifestyle as quickly as possible. Australia has a highly competitive general insurance market and cover is available for the majority of conceivable risks to property. Consumers should undertake annual risk planning, taking into account the replacement value of assets and the nature of the risks in their location and then make sure that appropriate insurance is held to cover the risks and the costs. Most importantly – Consumers should read and understand the policy they are considering using as protection against the unforseen. Many policies have exclusions that may affect your ability to claim following particular events. These exclusions are notified to consumers during the purchase process and it is critical that they are understood.
Further Information
For further information, contact Mr Karl Sullivan, General Manager Policy, Risk & Disaster Planning Directorate on (02) 9253 5100 and email ksullivan@insurancecouncil.com.au