Australia: NSW launches first state disaster mitigation plan
Source: Middle East Insurance Review | Apr 2024
The government of New South Wales (NSW) in Australia will now have its first-ever State Disaster Mitigation Plan (SDMP).
Put in place in collaboration with NSW Reconstruction Authority, the SDMP will work to mitigate the escalating threat of natural disasters. The trends for the future indicate that the potential for annual damages to buildings and infrastructure could reach A$9.1bn ($5.98bn) by 2060 if current trends of Nat CATs continue. The present-day average annual damage cost of Nat CATs across NSW is around A$3.1bn.
The SDMP is designed to shift governmental focus towards measures that reduce risks, outlining a collaborative framework for governmental agencies to enhance the preparedness of communities for a spectrum of threats, including, but not limited to, bushfires, floods, and coastal erosion.
With anticipated increases in the severity and frequency of the Nat CAT events due to climate change, the SDMP introduces a suite of strategies aimed at minimising vulnerabilities.
The plan advocates revisions to building codes to incorporate resilience-enhancing materials and designs, adjustments to insurance levy frameworks and engagement with the insurance industry to consider affordability in adaptation strategies.
The SDMP identifies storms, floods, heatwaves and bushfires as significant hazards, with a detailed risk assessment for the state’s local government areas. This analysis aims to prioritise mitigation efforts in regions most susceptible to these threats. M