The Actuaries Institute has called for more work to prevent disaster losses as part of a holistic risk management program.

Although flood mapping continues to improve, households and businesses still struggle to afford cover, the institute says in a pre-budget submission to Treasury.

It recommends a review and implementation of mitigation options that protect land and property.

“This could include revising building codes [and] planning rules, building dams and levees and potentially undertaking relocation and renovation of existing properties.”

The institute says the measures are more likely to be cost-effective over the long term than “the current approach of post-event funding of natural disaster-related losses”.

It says risk management principles should also be applied to budget forecasting, because many government forecasts do not recognise inherent uncertainty and risks, which leads to problems for users and reputational damage.