The Actuaries Institute has encouraged the Federal Government to support natural disaster mitigation policies that give “longer-term paybacks”.

In a pre-budget submission, the institute says future costs from natural disasters should be included in the budget’s statement of risks.

“This could entail development of government policy to improve resilience against natural disasters and to design funding mitigation and adaptation measures, supported by comprehensive cost-benefit analyses,” it says.

It also recommends the Government undertake research into understanding and managing the implications of climate change.

“Climate change is expected to have major environmental, economic and social impacts, and poses a serious risk to the industries that actuaries advise,” the submission says.