The Affect of Global Warming on Aussie Insurance

A new study released by civil engineers from the University of New South Wales has found that global warming both in Australia and internationally is likely to lead to an increased risk of severe weather events in Australia.

Australia is often subjected to the full force of Mother Nature, the latest catastrophic level to be Cyclone Marcia in late February, which damaged thousands of homes and businesses across New South Wales. The university report states that we are heading toward more destructive storms, like those to recently hit New South Wales.

These recent findings only serve to back up previous research into global warming which has asserted Australia to be one of the most vulnerable countries to climate change, which is likely to negatively affect the environment, economy and communities.

Bush Fires

In 2009, 173 lives were lost as a result of the Black Saturday Bushfires which erupted after a period of record hot weather. The effects of climate change are likely to increase the frequency and intensity of bushfires as the increase in fire-weather risk is likely at most sites over the next several decades:

  • The forest fire danger index in New South Wales and Western Australia is likely to grow by 10%, and forest fire danger indexes in South, Central and North East Australia is likely to increase more than 10%

Extreme Weather Events

The number of extreme weather events are on the rise globally, with predictions indicating potential increases in extremes of temperature, precipitation, droughts, storms, and floods. As a result, it’s likey that Australia could incur some of the following extreme weather occurrences, in addition to standard patterns:

  • Wind speeds of tropical cyclones could intensify by 5 to 10%
  • Tropical cyclone rainfall could increase by 20-30%.
  • In 100 years, strong tides would increase by 12-16% along eastern Victoria’s coast

With greater risk of natural catastrophe, it’s more important than ever to protect our business properties. While you have no control over the forces of nature, you can fully insure your business and assets in order to minimise the financial impact on your business in the face of damaging weather conditions.

An appropriate business pack from PSC Direct can ensure your business is protected now and into the future.