ICA and PIA urge Australia to reform land use for natural hazard protection

The Insurance Council of Australia (ICA) and the Planning Institute of Australia (PIA), representing the insurance sector and urban planning professionals respectively, are calling on governments at all levels to address growing housing challenges by reducing the risks associated with natural hazards.

At the 2024 National Industry Roundtable on Land Use Planning and Resilience, held in Brisbane, experts from government, finance, real estate, and community organisations emphasised the urgent need for coordinated reforms in land use planning.

The gathering highlighted the importance of directing new developments to low-risk areas to better protect people and properties from the increasing threats posed by floods, bushfires, and cyclones.

Strategic planning is essential for minimising risk, as construction in vulnerable areas puts more homeowners at risk from extreme weather, widening the gap in insurance coverage.

Andrew Hall, CEO, Insurance Council of Australia, said: “Insurance is the backstop for people’s greatest financial asset, their home. More frequent and severe disasters, a growing population, and an expansion of development into high-risk zones, is locking more risk into our financial system and putting communities in harm’s way.

“The ICA has long emphasised the importance of using a nationally consistent baseline of current and future extreme weather risk to inform where we build homes in the future, and identify which existing homes need to be relocated, retrofitted or raised to reduce community vulnerability. We must urgently reduce risk where we can and ensure that our planning systems are robust and forward-looking to protect our communities and assets.”

In a joint statement, the ICA and PIA outlined several key proposals for future land use planning, including banning further development in flood-prone areas, updating building standards to address emerging risks, and strategically implementing home buyback programs in regions where risk reduction is not possible.

Matt Collins, CEO, Planning Institute of Australia CEO, added: “Good land-use planning can help make our communities more resilient to natural disasters, so critical that planners have the tools we need like up-to-date mapping and modelling. PIA strongly supports the need for high-quality strategic plans that clearly identify areas where we can’t manage the risks from threats like flood and fire, with clear indications of where we simply shouldn’t be building.

“We don’t just need more resilient homes – we need to plan for the surrounding landscape. The decisions we make on where to live and invest in the future should use the best available data and modelling, and we need governments to invest in these critical inputs.”

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