The federal government’s flagship disaster resilience program received more applications than it had funds available in its most recent round, a National Emergency Management Authority executive has told a Senate inquiry.

The Disaster Ready Fund provides $200 million a year of federal money for resilience and mitigation projects, with states and territories asked to provide matching support. The scheme has a five-year commitment. 

“In terms of the Disaster Ready Fund in particular, the program has been oversubscribed,” first assistant co-ordinator-general of programs Hannah Wandel said. “For round two, which was announced recently, we actually had, I think, 502 applications.” 

Some 164 projects were funded, including levee improvements, building upgrades, education and training, and rain gauge installations. 

Ms Wandel said the question of how a project would affect insurance premiums was not specifically considered but was part of the reduction-of-risk criteria, while processes are under way to improve data and information that can be used through funding programs. 

NEMA also oversees the Disaster Recovery Funding Arrangements, which include joint federal and state programs focused on “building back better” after catastrophes 

First assistant co-ordinator-general of policy and governance Andrew Minack told the inquiry a “centralised data-asset piece of work” is under way, with input from the Australian Bureau of Statistics and insurers to better understand where people lack adequate cover and to assist investment decisions. 

“We’ve signed agreements with four of the insurers to actually share data with them, so we’ll have a much more comprehensive understanding down to a pretty granular level about where there are issues of either no insurance or underinsurance,” he said. 

“It will be the first time that we have a very comprehensive understanding of that data picture; and then, in terms of future investment, we’ll have a better understanding of what interventions could be made and what impact they would have on any kinds of premium reductions.”  

Mr Minack said a key part of the Hazards Insurance Partnership between government and the industry involves raising community awareness about actions household can take to manage risks. 

“The first suite of materials will be released by the end of 2024. These will include actions that households can take such as renovating, maintenance, how to review their insurance, and specific guidelines for bushfire, cyclone, storm and flood,” he said. 

A mitigation measures knowledge database is being developed to inform the community about resilience actions, as NEMA also works with insurers to make sure that, if households take those actions, there will be a reduction in premiums, he said. 

Mr Minack told the inquiry that, increasingly, in dealing with the community, there is an expectation that resilience will be embedded in recovery work. 

Australian Climate Service group executive Vicki Woodburn told the inquiry a report from the second phase of the National Climate Risk Assessment should be released by the end of this year. 

“Then in March/April next year, we plan to release additional data, which will enable people to have a look more closely at their own circumstances and do their own climate-risk analysis,” she said. 

The Senate inquiry is examining the impact of climate risk on insurance premiums and availability.