Only 40% of Australia’s annual natural peril costs of $11-$12 billion are insured, the Actuaries Institute says in a pre-Budget submission urging increased investment in mitigation.

“The figure includes public assets and the cost of intangible losses such as mental health and family violence as a result of natural disasters,” the institute says.

“Accordingly, the [actuarial] profession urges the Government to support policies to improve the nation’s resilience against natural disasters and to design funding mitigation and adaptation measures supported by comprehensive cost benefit analysis.”

The submission reiterates recommendations for the Government and states to co-contribute $200 million a year towards mitigation, and for local governments to be required to budget for natural disaster costs, as proposed by the Productivity Commission.

It says the Budget should include future natural disaster cost estimates in the statement of risks section and calls for more research funding, including for a national service to provide climate change projections at a regional level.

The institute says climate policy should be developed to reduce Australia’s emissions in line with its Paris agreement commitments and to achieve net zero emissions by 2050.

“This will enable industry, including the financial services industry to implement long-term planning in line with a transition to a low-carbon economy,” it says.

The Insurance Council of Australia (ICA) has also argued for the $200 million mitigation spending recommended by the Productivity Commission. But this year it didn’t submit a pre-Budget submission because “ICA’s priorities are known by all sides of politics, particularly with regard to mitigation”, spokesman Campbell Fuller said.

The National Insurance Brokers Association also decided against a submission this year.

The Federal Budget will be released on April 2, instead of the usual timing in May, after the date was brought forward by the Government.

The Government is widely expected to call an election for May, shortly after the Budget is delivered.