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Research

Our purpose is to make your world a safer place, and we recognise that our role extends beyond transferring risk and paying claims.

Our purpose drives us to collaborate with the community, Government, industry bodies and other organisations to understand, reduce and remove risk, as well as to build resilience and preparedness in our communities.

One part of this advocacy work is our research papers. These papers cover a wide range of topics impacting our customers and our business such as climate change, disaster response and resilience, small business, diversity, inclusion and belonging. The aim of each paper is to provide information, analysis and policy recommendations that will further public discussion and reduce risk for our customers. 

 

Addressing resilience in land use planning (2023)

Key to improving insurance affordability in Australia is reducing the natural disaster risk our communities face. Australian communities must incorporate natural disaster risk and future climate risk into land use planning to ensure we are no longer planning and building communities in harms way.

This report commissioned by IAG and undertaken by AECOM Australia, explores the enablers and barriers for including natural disaster risk in land use planning decisions. It uniquely pulls together viewpoints from the literature and experts across the land planning system including Local, State, and Federal Government, the insurance sector, property developers and community not‑for‑profit organisations.

The report identifies six challenges facing Australia’s land planning system and makes 10 recommendations to support decision makers in developing more robust and resilient land use strategies.

Micro But Mighty – Magnifying Microbusiness in Australia (2023)

Microbusinesses are a significant contributor to Australia’s economy. Yet the value of this sector is often overlooked in public debate surrounding business and small business policy.

This report aims to better understand the importance of microbusinesses and their contribution to the Australian economy, while identifying the challenges facing this sector. This is supported by five key recommendations to help microbusinesses prosper.

Resilience Investment Vehicle Insights Report (2023)

In 2019, NAB and IAG convened the Resilience Investment Vechicle to bring cross-sectoral stakeholders together to investigate how public and private capital could be directed to finance new and existing infrastructure that:

  • builds resilience,
  • reduces disaster risk, and critically
  • derives a financial return for investors.

Climate-KIC Australia was engaged by IAG and NAB to review and identify insights and lessons from the project.

The result of their analysis is outlined in this Insights Report and Report Summary. The five key findings are:

  1. There are two main barriers to private sector resilience investment – revenue and scale
  2. Barriers were seen at each level of resilience projects – Household level, community level & large-scale infrastructure level
  3. Cross sector collaboration is new and difficult – and requires people who are motivated to empower and drive change
  4. Good data is required – for effective decision making and innovation such as data on hazards and physical climate risks
  5. Intermediary organisations are needed – to bridge the gap between finance sector, government and the community

 

Planned Relocation - Protecting our Communities (2023)

This discussion paper provides an investigation into the enablers and barriers of Planned Relocation in Australia for residential properties, as an adaptation response to natural hazards. It has been informed by a Fact Finding process, which included case study reviews, stakeholder engagement and literature review.

This discussion paper is intended to contribute to the Planned Relocation evidence base so that decision makers can engage in informed conversations on the issues related to Planned Relocation in Australia.

Using large climate model ensembles to assess historical and future tropical cyclone activity along the Australian east coast (2022)

National Center for Atmospheric Research (NCAR), Cooperative Programs for the Advancement of Earth System Science, UCP, IAG and Environmental Sciences and Management, North-West University

Economic losses resulting from natural catastrophes are trending upwards, with meteorological events dominating both overall (45%) and insured (70%) losses. Of all meteorological events, tropical cyclones (TCs) are by far the costliest of all the natural hazards globally.

Assessing regional changes in tropical cyclones (TCs) and their future impacts are challenging given the short historical record and limited sample size of these extreme events. To address this, the researchers use large climate model ensembles to increase sample size and explore historical variability and future changes in regional TC behavior.

National Flood Hazard Mitigation Priorities (2022)

Australia has an extensive network of floodplains; these range from those associated with small local urban drainage systems through to the vast expanse of floodplain associated with the Murray Darling River. While there is often a good understanding of flood risk at a local government or state level scale, there are only limited studies that have evaluated the flood hazard mitigation projects across Australia and then ranked them in order of priority.

IAG has long been an advocate for a stronger focus on prevention and mitigation of floodplains to minimise the impact of floods on Australian communities. It is acknowledged that there is finite funding available to put towards mitigation projects and the difficult question is where and how is mitigation funding best spent. As a result, IAG commissioned Rhelm to develop a set of National Flood Hazard Mitigation Priorities. The method for setting priorities involves identifying areas with high flood risk, where there are potential flood mitigation measures that could be implemented to reduce this risk and then ranking the practicality and cost benefit of each area.

This report is a technical report that accompanies a series of flood summaries or “snapshots” that have been prepared for each of the short-listed areas identified to be affected by high flood risk. 

Streamlining Insurance Regulation (2022)

IAG made a submission to the Australian Law Reform Commission (ALRC) and commissioned a report by MinterEllison entitled, ‘Streamlining Insurance Regulation’. MinterEllison was engaged to prepare a report that is informed by their own research and input from IAG’s experience as a regulated entity.

MinterEllison makes several recommendations to address specific issues of complexity, overlap and duplication of requirements in the current legislative regime for general insurance.

SGS - The backbone of regional and rural economies: Small business and community resilience (2021)

In this report, we look at how natural disasters affect small business and the critical role insurance plays in supporting their recovery – and the community’s recovery. We know that small business took the biggest economic hit following the Townsville floods and Black Summer bushfires in 2019 and 2020, but we also know that small businesses with insurance were able to recover faster.

Severe weather is becoming more frequent and intense, and this report demonstrates how important it is for business to prepare and become more resilient. Small business plays a vital role in Australia’s economy and is essential to the health and prosperity of our regional and rural areas.

Flood Risk Management in Australia: Building flood resilience in a changing climate (2020)

Geneva Association and IAG

Flooding is Australia’s costliest natural hazard-related cause of disaster when both tangible and intangible losses are taken into account.

The Geneva Association’s new report on Flood Risk Management in Australia, developed in partnership with IAG, highlights strong engagement from the insurance industry and many government actors and communities to tackle this multi-faceted challenge, as well as opportunities for improvement.

Severe Weather in Changing Climate – 2nd Edition (2020)

IAG and the National Center for Atmospheric Research (NCAR)

IAG released the second edition of the Severe Weather in a Changing Climate report, in partnership with the US-based NCAR in September 2020.

The 2nd edition of the report builds on the first report released in November last year and notes that climate change will result in more frequent and intense extreme weather events across Australia, resulting in greater property, personal and economic damage, and hardship for Australian communities.

Menzies report – Strengthening Resilience (2020)

This paper was commissioned by IAG in response to the 2019-20 bushfires that consumed more than 18 million hectares of land, destroyed over 5,900 buildings and killed at least 33 people.

Many of its findings and recommendations apply to natural disaster management more broadly. The role of climate change in bushfires has been the subject of considerable recent debate and discussion. Climatic variations are inextricably linked to the likelihood of bushfires and their intensity. Mitigating climate change by reducing emissions of greenhouse gases is a global challenge to which both sides of Australian politics have pledged to play a part.

Future of Work (2019)

The nature of work around the world is changing, and Australia is not immune. With the increase in automation in Australia and globally, some fear the worst – that in the future, human workers themselves will be replaced. However, while automation has displaced many jobs, it has also created new industries, made many jobs safer, increased efficiency, and enhanced economic prosperity. 

The worst-case scenarios about the future of work may not have yet materialised and may never do so, but the changing nature of work presents a real challenge to governments and organisations. Avoiding the worst-case scenario demands creative responses from policymakers and industry leaders to ensure that the workforce of tomorrow is equipped for an uncertain future. This report explores this longterm challenge, and puts forward ideas aimed at navigating a path forward.

Severe Weather in a Changing Climate (2019)

IAG and the National Center for Atmospheric Research (NCAR)

IAG and NCAR released the first edition of the Severe Weather in a Changing Climate report in 2019.

This report reviews and interprets the latest climate science to understand how climate change is impacting the severity and frequency of weather events like tropical cyclones, hailstorms and rainfall, and what is likely to happen in the future. The report also examines the changing physical risks from severe weather patterns, considering past, present and future climates.

A review of smash repair industry trends (2019)

The smash repair industry in Australia has been going through a long period of transition from a cottage industry to one involving greater levels of investment and specialisation.

This research paper by Sapere Research Group examines the trends and challenges facing the motor vehicle smash repair industry in Australia. It is based on analysis of public data sources, discussions with some industry participants and includes consideration of developments in the United Kingdom (UK) and the United States (US).

Physically-based landfalling tropical cyclone scenarios in support of risk assessment (2019)

IAG, National Center for Atmospheric Research (NCAR) and, Environmental Sciences and Management, North-West University

Populations and property values are increasing in tropical cyclone prone regions, driving up repair and replacement costs following a tropical cyclone impact. Climate change influences on tropical cyclones and sea levels will only exacerbate these rises.

This report explores the value of dynamical models for creating targeted, detailed, and physically plausible multi-hazard tropical cyclone scenarios, to better understand future risk.

At What Cost? Mapping where natural perils impact economic growth and communities (2016)

Australia is at growing risk from a range of natural disasters including tropical cyclones, bushfires, storms and floods. If unmanaged, these risks will significantly impact our resource and knowledge-led economy, and damage homes, businesses and infrastructure and put lives at risk.

At what cost? Mapping where natural perils impact economic growth and communities is the first time the population data and economic activity of all Local Government Areas (LGAs) across the nation have been overlaid with natural perils risk levels provided by the Insurance Council of Australia (ICA) and IAG. The aim of this report, and its accompanying interactive maps and data files, is to highlight the locations at the greatest risk of natural perils and demonstrate how this risk intersects with economic activity and the communities capacity to respond to disasters. 

Australian Business Roundtable for Disaster Resilience and Safer Communities (2013 - 2021)

IAG has also contributed to six reports by the Australian Business Roundtable to help build a country better equipped to handle disasters caused by natural hazards and extreme weather events.

Visit the Australian Business Roundtable website to view the reports.

Interannual Variability of Tropical Cyclones in the Australian Region: Role of Large-Scale Environment (2008)

IAG and the School of Meteorology, University of Oklahoma

This study investigates the role of large-scale environmental factors, notably sea surface temperature (SST), low-level relative vorticity, and deep-tropospheric vertical wind shear, in the interannual variability of November–April tropical cyclone (TC) activity in the Australian region.

The Impact of Climate Change on Insurance against Catastrophes (2003)

This research paper was presented at the Institute of Actuaries of Australia 2003 Biennial Convention. It notes that IAG believes that human-induced climate change is now a reality and that it must be addressed with appropriate urgency.

It notes the role of insurance in underwriting weather-related risk is an important component of the national economy. Any reduction in the industry’s ability to underwrite weather-related risk will have serious ramifications for the economies of those vulnerable regions where climate and weather risk is greatest.

Australia

Acknowledgement

IAG acknowledges the Traditional Owners of the lands across Australia as the continuing custodians of land and waterways in which we live and work. We pay our respects to Elders and ancestors past and present.

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