IAG hopes its new report quantifying the threat natural disasters pose to Australian GDP will spur the Government and wider community into spending more on mitigation.

The report shows $326.6 billion of GDP – about 20% of the total – is located in areas with high to extreme risk of tropical cyclones. The figure at risk from bushfires is $175 million, while floods threaten about 28% of GDP.

IAG MD and CEO Peter Harmer says the report will help governments prioritise disaster mitigation spending.

“Safeguarding our communities into the future is an important and often complex subject and one that Australia has approached in an ad-hoc way since the Europeans came here more than 220 years ago,” he said.

“This report will help all levels of government, businesses and the wider community understand the impact ever-increasing natural disasters are having on our economic activity.”

The report also aims to help governments make informed decisions on land zoning, based on a risk-benefit model.

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