The significant risk of property damage and business interruption from extreme weather conditions means that it is now more important than ever for businesses to understand their exposure, assess preparedness for natural hazards and take measures to mitigate risks.
The three years leading up to 2022 have recorded some of the most costly disasters on record in Australia.
Extreme wet weather conditions largely associated with La Niña patterns in the Pacific Ocean resulted in November 2021 being recorded as the wettest month on record since 1900, with an average rainfall of 76.2mm, which is 135% above the 1961-1990 average.[1]
From January to October in 2022 alone, there were more than 40 extreme weather catastrophes and events across our states and territories[2]:
- Summer bushfires (WA)
- Floods (NSW, Qld, WA, Vic, Tas, SA, NT)
- Storms (NSW, Qld, Vic, WA, Tas)
- Cyclones (Qld, WA, NT).
On the one hand, over the summer months, record-breaking temperatures and severe drought have fuelled an unprecedented number of fires burning across some western and southern parts of Australia.
At the same time there has been an increase in rainfall, severe storms and flooding, causing damns to overflow in the eastern parts of Australia, affecting thousands of people across New South Wales and Queensland. Murray-Darling basin storages are at their highest levels for more than a decade, and in other parts of Australia damns are at higher levels than in previous years.[3]
According to industry data released by the Insurance Council of Australia (ICA), throughout 2022 insurers paid $5.29bn to customers affected by storms and flooding as a result of La Niña, with more than 296,000 claims lodged. [4]
Marsh’s 2023 Natural hazard and climate risk management guide is your one-stop resource to understanding how you manage the risk of climate. You will be provided with insights from the Bureau of Meteorology about the exposures created by upcoming weather events, natural hazard and climate risk management. Get your copy now.
What you’ll learn:
- Update on La Niña and the summer ahead
- Australian climate change forecast – state and territory breakdown
- Insurance lessons learnt from recent La Niña / weather events
- What can you do in preparation for an event?
- How do you look at climate change from a risk management perspective?
[1] Source: Special Climate Statement 75 – Australia's wettest November on record, Bureau of Meteorology, 14 February 2022
[2] Source: Disaster Assist: Australian disasters, Department of Home Affairs, accessed 18 November 2022
[3] Source: Bureau of Meteorology, 17 November 2022, Climate outlooks—weeks, months and seasons, Long-range forecast overview
[4] Source: 2022 flood now third costliest natural disaster ever, New Release,28 June 2022