The Actuaries Institute and Australian Local Government Association have pressed the case for increased mitigation spending in their pre-federal budget submissions, while insurance groups have this year opted out of the process.

Only 40% of Australia’s annual natural peril costs of $11-$12 billion are insured, the Actuaries Institute says as it urges spending and policies to improve resilience. The cost estimate includes public assets and intangible losses such as mental health and family violence as a result of natural disasters.

The submission reiterates recommendations for the Government and states to co-contribute $200 million a year to mitigation, and for local governments to be required to budget for natural disaster costs, as proposed by the Productivity Commission.

It says the budget should include natural disaster cost estimates in the “statement of risks” section and calls for funding of a national service to provide climate change projections at a regional level.

The institute says climate policy should be developed to reduce Australia’s emissions in line with its Paris Agreement commitments and to achieve net zero emissions by 2050.

“This will enable industry, including the financial services industry, to implement long-term planning in line with a transition to a low-carbon economy,” it says.

The Australian Local Government Association submission also reiterates the case for $200 million in mitigation spending and highlights the benefits promoted by the Australian Business Roundtable for Disaster Resilience and Safer Communities.

The Insurance Council of Australia (ICA) and National Insurance Brokers Association have both decided against making submissions this year.

“ICA’s priorities are known by all sides of politics, particularly with regard to mitigation,” ICA spokesman Campbell Fuller said.

The federal budget will be released on April 2, a month earlier than usual, with the Government widely expected to call an election for May.