Insurers have welcomed an announcement from Financial Services Minister Kelly O’Dwyer that the federal and Queensland governments will work with James Cook University on developing and implementing the Strata Title Inspection Scheme.

“More needs to be done on pre-disaster mitigation to build strength and resilience within communities,” Ms O’Dwyer said.

“That is why the Government has been working with the Queensland Government to improve the information available to owners of strata title properties about a property’s susceptibility to weather damage, and ways to make properties more resilient.”

The Insurance Council of Australia (ICA) says it initially commissioned a study by James Cook University in 2013.

The key recommendation was that strata-title properties in tropical Queensland undergo engineering inspections to ensure they are resistant to extreme weather.

If buildings are shown to be resilient, this evidence can be presented to insurers and could lead to reduced premiums. If they are vulnerable, building owners have the opportunity to make improvements.

ICA CEO Rob Whelan says the scheme is a significant milestone for pre-disaster mitigation, but stresses there is much more to be done.

“In the aftermath of Cyclone Debbie, the message is clear: communities in disaster-prone areas need investment in permanent, well-designed mitigation solutions,” he said.

“Where these solutions are not in place or poorly designed, insurers have to price the risk of these events, resulting in higher premiums.

“The Insurance Council urges the Federal Government to heed the recent Productivity Commission recommendations and invest at least $200 million a year in mitigation and resilience measures, to be matched by state and territory governments.”

Suncorp and IAG have previously commissioned James Cook University to study the common vulnerabilities of strata buildings during a natural disaster, particularly water ingress during cyclones and severe storms.

A Suncorp spokesman told insuranceNEWS.com.au it welcomes Ms O’Dwyer’s announcement.

“This scheme will give us greater understanding of the structural integrity of strata buildings, which will ultimately help us price risk more accurately,” he said.

“This builds on Suncorp’s landmark Protecting the North program and our extensive studies into cyclone resilience with James Cook University’s Cyclone Testing Station.”

IAG also welcomed the announcement, describing the new scheme as “an important step to helping strata schemes understand and mitigate the impacts of extreme weather events on their property”.

“IAG has completed its own work to improve community resilience through its CGU Strata Building Assessment Program,” a spokesman told insuranceNEWS.com.au.

“The program provided recommendations to improve the resilience of residential strata buildings in the event of severe weather, so that our customers could take steps to reduce their risk and receive potential insurance premium reductions.”

However, campaigners for reduced premiums in the north note the scheme has suffered from at least a three-year delay.

“This was announced in the federal budget in 2014 and has been sitting with state government since then,” campaigner Margaret Shaw told insuranceNEWS.com.au.

“We welcome this move, but there is no guarantee any insurance company will take a blind bit of notice of the results.”