In the past ten years alone adverse weather events have cost Australians $35 billion. This figure has doubled since the 1970’s and is only set to rise. Having large implications not only for everyday Australians but also for business owners. Making it increasingly important to obtain business insurance with an adequate level of cover.
The harsh impacts of climate change and rising sea levels is set to cost our economy $100 billion per year, according to a recent report by the Climate Council. The cost of extreme weather events is set to rise rapidly, increasing the value of insurance products.
The council specifically said the world is transitioning into a “decisive and transformative” time for climate action. Immediate action needs to be taken to ensure Australia can halve emissions by 2030 and achieve net zero emissions by 2040.
The council also mentioned that Australia has a lot to lose from climate change induced extreme weather events. On the other hand, we will see a great benefit from the zero-carbon economy. From being one of the largest exporters of fossil fuels to becoming a global leader in clean industries and renewable energy. Success is the only option.
Did you know that Australian are five times more likely to become displaced from a disaster caused by climate change than individuals residing in Europe? The cost of climate change for Australians will rise even further in the coming decades, projected to surpass $100 billion p.a by 2038.
The past few years we have experienced a “era of megafire” throughout Australia and also globally. These disasters including floods, fires and storms caused economic losses of $272 billion in 2020.
General Manager at Risk Frontiers Andrew Gissing advocates insurance having an important role in managing the increase in natural disasters.
Any business owner who isn’t confident that they are adequately insured for adverse weather events may want to consult an insurance broker, such as Craig at Business Insurance Consulting. A broker can analyse relevant product disclosure statements and find the optimum insurance for your business.
Gissing told insuranceNews.com.au that “climate change will see the potential for more frequent extreme weather events and with that a rise in average annual losses associated with those”
He goes on to say that minimising the risk is essential, by reducing the impacts of climate change and reducing carbon emissions.
This will lead to more affordable insurance for everyday Australians as well as Australian business owners. Creating a positive outcome for all parties involved.
There have been calls from the insurance industry for a while for reform and action nationally by both Australians and the Australian Government. With some action being taken already by various states and territories.
Craig at Business Insurance Consulting can assist you with any queries in regard to adequate insurance, for your business, in the event of adverse weather.