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Insurer funds massive cyclone study

The James Cook University Cyclone Testing Station in Townsville will examine 24,000 insurance claims to identify ways of improving the resilience of north Queensland housing.

The study is funded by Suncorp, which hopes the end product will be lower premiums.

Cyclone Testing Station Director David Henderson says structural engineers will study claims from cyclones Larry and Yasi – and buildings that weren’t damaged – to draw conclusions about what makes homes more resilient.

Cyclone Larry, which struck in March 2006, caused $40 million in insured losses, while Yasi, which made landfall in February 2011, cost insurers $1.4 billion.

“Along with the age of properties, the shape, orientation, construction form, building type, roof type and attachments at the properties will also be considered,” Dr Henderson said.

“This will help us form a clear picture of what differentiates cyclone-resilient housing stock from less resilient homes so we can investigate cost-effective ways of improving them.”

University spokesman Richard Davis told insuranceNEWS.com.au the scale of the research program is unprecedented.

“The number of claims, and the fact that they are looking at properties that did not claim as well as those that did, make this a ground-breaking study.”

Suncorp Personal Insurance CEO Mark Milliner says the information should reduce risk and ultimately lower the cost of home insurance.

“It could even help governments determine whether building standards are suitable in addressing cyclone risk,” he says.

The research findings should be reported next year and Suncorp has also agreed to collaborate with the university on future works.