'We need a plan on floods rebuild', ICA tells NSW Premier

An “overarching plan” is required to rebuild after Australia’s worst floods catastrophe, the Insurance Council of Australia (ICA) has warned NSW Premier Dominic Perrottet.

In a joint letter with the Australian Banking Association’s Anna Bligh, ICA CEO Andrew Hall says there is “an urgent need to identify key actions, resources, and timing for any rebuild”.

ICA wants clarity about the rebuild, but also stresses time pressures.

“The plan would need to include decisions on land zoning and reconstruction taking into account future risk and related insurability and lending implications and building in long-term resilience.

“This plan needs to establish clear expectations on the pace of the rebuild and have clear decision making and reporting frameworks.”

The letter recommends the establishment of a cross-sector leadership group – an approach that worked well after the Brisbane floods and Christchurch earthquake in 2011.

“A high-level cross-sector leadership group, led by a significant figure with bipartisan support, should be established in response to this disaster to implement the plan, resolve policy and operational issues, undertake ongoing risk identification, and report on progress.”

The letter acknowledges the ongoing inquiry into the floods, but points out the need to move quickly.

“In addition to endeavouring to meet customer expectations, the requirements of insurance policies and the statutory timeframes for responding to claims will see decisions being made very soon that may be reversed through implementation of the inquiry’s recommendations.”

There have been more than 78,000 claims related to the floods in NSW, with an estimated claims value of $1.1 billion. In the Lismore LGA there have been almost 5000 claims with an estimated value of $313 million.

The letter says there are “complex issues to work through” in Lismore.

“These issues include the construction of community resilience infrastructure such as levees, the future insurability and lendability of homes and businesses, land use planning, land use decisions by major commercial residents, and building codes and standards.

“There are also several more short-term issues that may impact recovery, including the availability and cost of construction labour and materials, the availability of replacement motor vehicles, the availability of temporary accommodation, the availability of data, the impact of cash settlements, and the appropriateness of insurers providing ‘like for like’.”