IAG says a government moves to improve the understanding of climate change issues in high-risk coastal areas is a step in the right direction.

But the insurer says there is still a lot of work to be done to fix problems with “insurance gaps” for damage relating to storm surges, sea level rises and corrosion.

The Victorian Government budget last week announced a $9.2 million allocation over the next four years for metropolitan and coastal planning, including the mapping of the state’s coastline.

And the Federal Government has also pledged to spend $3.2 million on a coastal adaptation strategy, which has been a direct response to a parliamentary inquiry into managing coastal zones and the impacts of climate change.

Both programs will include coastal mapping.

Victorian Planning Minister Matthew Guy says mapping of the coastline will provide detailed information to help residents and the government prepare for future storm surges and possible sea level rises.

He says the coastal-mapping project will be followed by community consultation to develop appropriate strategies that identify climate risk. This will include establishing planning policies and controls to guide future development.

An IAG spokesman says measures to enhance understanding of risk are welcome, but it must be backed up with other adaptation measures such as building resilient communities.

“This includes investment in infrastructure, stronger building standards, improved planning and zoning to avoid development in areas of extremely high risk and community education.”

The spokesman says mapping could provide residents with the power of knowledge to minimise their risk of exposure.

“Across a community this can have a very powerful effect,” he told insuranceNEWS.com.au.

Federal Minister for Climate Change Greg Combet says that the science is clear and there is an increasing need to build resilience in our coastal communities to the impacts of climate change such as sea level rises.

“We need to plan now to address these challenges, including how and when we should invest into the future,” he said.