IAG MD and CEO Peter Harmer says more than $88 million in Government funding for “critical research” into bushfires and natural hazards will help the nation take necessary action to make communities safer.

As insuranceNEWS.com.au has reported, the Government cash will be used to set up a new research centre for natural hazard resilience and disaster risk reduction.

IAG says its insurance brands see the impact of natural disasters on Australians “firsthand”.

“Research is critical to understanding the risks that Australian communities face,” Mr Harmer said today.

“It allows us to better understand and plan for the critical steps we can take to make communities safer and more resilient to natural disasters.

“We welcome all forms of investment in disaster mitigation, including research, and commend the Australian Government on this long-term investment into research on natural hazards.

“We look forward to working with the new research centre and would welcome the opportunity to contribute to research projects.”

Last year IAG partnered with the US-based National Centre for Atmospheric Research to release the Severe Weather in a Changing Climate report.

The report includes the latest data on the state of the climate and predictions on future extreme weather events based on a range of warming global temperatures.

IAG is also a founding member of the Australian Business Roundtable for Disaster Resilience and Safer Communities.

The roundtable has commissioned five reports since it was founded, which focus on how to make Australian communities more resilient to natural disasters.