Why insurance matters: insights from research post-disaster

Abstract

This paper reviews findings from a research project examining the role insurance cover (or the lack thereof) plays in disaster recovery. It considers the implications of insurance within a shared-responsibility model for emergency management and disaster mitigation policy and practice. A key finding shows how insufficient understanding of Bushfire Attack Level ratings is exacerbating the problem of underinsurance. The insurance industry has the ability to improve community recovery through greater disaster preparedness efforts. What is needed in Australian emergency management policy is an increased emphasis on disaster mitigation spending, as well as a more holistic understanding of recovery, in which insurance is understood as one tool within a complex process.