Strengthening national leadership on housing delivery, land use planning and improving the resilience of existing housing stock at the point of repair, renovation or replacement have been identified as key practical priorities to protect Australians against the impacts of extreme weather, according to a new report by IAG.
The 96-page new report “The Resilience Delivery Gap Turning Australia’s Housing Resilience knowledge into Action’ commissioned by IAG and produced by McKell Institute, calls for coordinated national action to strengthen Australia's housing resilience in the face of escalating climate risks and costs.
The report draws on insights from experts across government, insurance, finance, construction, manufacturing, property, planning, research and community sectors to identify practical pathways for translating existing resilience knowledge into meaningful, large-scale action. IAG is Australia and New Zealand’s largest general insurer.
The newly commissioned McKell Institute report – Resilience Delivery Gap: Turning Australia's Housing Resilience Knowledge into Action –
Since 2019, the Insurance Council of Australia has declared 29 extreme weather events, totalling A$20.7bn ($14.43bn) in insured losses, from more than 760,720 home and building claims. In the 2026 financial year alone, declared extreme weather events generated A$3.98bn in insured losses.
As Australia experiences more frequent and severe weather events, the report highlights a critical implementation gap between what is known about housing resilience and what is being delivered.
Without stronger adaptation, the combined costs of residential damage from cyclones, floods, and bushfires, insured and uninsured losses, and government recovery payments are projected to exceed A$35 billion annually by 2050.
The report identifies 20 practical recommendations across four critical pathways to bridge Australia’s housing resilience gap:
• Strengthen national leadership and coordination through the development of a National Housing Resilience Guidance Framework to complement the National Construction Code and embed resilience considerations across housing delivery, planning and disaster recovery.
• Improve the resilience of existing homes through targeted maintenance, retrofitting programs, point-of-repair upgrades and household stewardship initiatives, supported by trusted advice, practical guidance and appropriate financial incentives.
• Build industry capability by investing in workforce skills, supply-chain coordination, research translation and cross-sector collaboration to accelerate the adoption of resilience measures.
• Align financial incentives and investment to fund, test and scale effective resilience solutions through coordinated public and private sector demonstration programs.
IAG Managing Director and CEO Nick Hawkins said protecting Australian communities from the growing impacts of climate change is essential.
He said, “IAG has long advocated for stronger climate resilience and greater investment in disaster mitigation initiatives to help protect people, communities and the broader economy from the increasing frequency and severity of extreme weather.
“This report brings together expertise and insights from the multiple sectors that can help design and deliver resilience construction measures to make properties safer, stronger and better able to withstand the impacts of extreme weather now and into the future.”
The McKell Institute CEO Veronica Newman said the report highlights the importance of convening leaders from construction, finance and the insurance sectors to translate diverse perspectives into practical, actionable solutions.
“We know the steps to take to build more resilient homes in Australia - what we lack is the system to deliver them at scale. This report sets out a practical national agenda to meet this challenge.”
The report builds on IAG's extensive body of resilience research, including Severe Weather in a Changing Climate (3rd Edition, 2025), Addressing Resilience in Land Use Planning (2023) and National Flood Hazard Mitigation Priorities (2022).