The insurance industry has criticised the Federal Government for failing to implement proposals for increased disaster mitigation spending.

The Government has published its response to the Productivity Commission’s report on natural disaster funding arrangements, but ignores a key recommendation to increase mitigation spending to $200 million a year.

The Australian Business Roundtable for Disaster Resilience & Safer Communities says it is disappointed after “repeatedly” calling for a new approach.

It has published a number of reports showing money invested in mitigation reaps massive savings further down the track.

The Insurance Council of Australia says the Government’s current measures are not enough to stop disaster recovery costs spiralling, and the National Insurance Brokers Association has called for stronger leadership on the issue across all levels of government.

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