The Australian Business Roundtable for Disaster Resilience & Safer Communities is to measure the long-term social impact of catastrophes in a framework due for completion early next year.

Roundtable member Mike Wilkins, the MD and CEO of IAG, says with the frequency and intensity of natural disasters rising, the long-term social and economic costs to Australia are unsustainable and must be measured and understood.

A recent Infrastructure Australia audit estimates annual spending on infrastructure services will increase from $187 billion in 2011 to $377 billion in 2031.

The social impact framework aims to close a gap in critical research into the long-term effects disasters have on communities.

The roundtable will also create national infrastructure investment guidelines, showing the economic and social benefits of building resilience into infrastructure to improve decision-making and safeguard lives and property.

Both projects are being undertaken in conjunction with Deloitte Access Economics.

Mr Wilkins says the framework and guidelines “herald a new approach” to how Australia invests in infrastructure and manages natural disasters.

“It will provide practical and concrete guidelines for the design and build of future infrastructure and help inform investment needed to educate our communities on what they need to do to protect their families, property and business before the disaster hits,” he said.

“It has been difficult to capture the long-lasting impact of natural disasters on communities.

“This work will build on the immediate costs to livelihoods and property and measure other major community impacts that include health system costs, employment and productivity impacts, and other losses including family breakdown and social dislocation.”

Australian Red Cross National Manager for Emergency Services Andrew Coghlan says household preparedness programs are vital to ensuring a strong recovery after disasters, and these projects will help mitigate risks and build resilience.

The roundtable was set up in 2012 to support a co-ordinated national approach to resilience.

It brings together CEOs from the Australian Red Cross, IAG, Investa Property Group, Munich Re, Optus and Westpac.