Australia: Actuaries back pre-disaster funding
Source: Asia Insurance Review | Jun 2020
In a statement made in its submission to the Royal Commission into National Natural Disaster Arrangements, the Actuaries Institute said it strongly supports a greater balance of spending on natural disasters to be pre-funding on mitigation and adaptation to prevent property damage rather than post-disaster funding on relief and recovery.
Currently, the balance of spending is heavily weighted towards post-disaster funding. It is accepted that the return on investment from considered pre-funding is many times greater than the return on post-disaster funding.
However, the institute said that mitigation and adaptation measures can reduce insurance premiums and provide Australians greater access to financial security. A