The NAB and CommBank insurance brands have joined a resilience ratings scheme linking household bushfire mitigation with premium reductions, as work continues towards delivering a national multihazard application.

The bank brands, underwritten by Allianz and Hollard, join other scheme participants NRMA Insurance and Suncorp, resulting in about half the home insurance market recognising the bushfire resilience ratings.

Households have gained premium discounts of $50-$840 a year by using the bushfire resilience ratings app, launched by the Resilient Building Council in 2023.

More than 63,500 assessments have been completed, with 18,112 households adopting at least two of the recommendations and some policyholders reducing their bushfire risk premium component by up to 60%, the Resilient Building Council says.

The Insurance Council of Australia says it is an example of what is possible when industry, government and households “work together to get ahead of risk”.

“The resilience ratings system is an Australian innovation now being studied globally as proof that household-level risk reduction can help improve insurance affordability,” Insurance Council CEO Andrew Hall said.

The free app allows householders to assess their homes and receive recommendations. Verified upgrade certifications, valid for three years, cost $290 and allow relevant policyholders with a three-star rating and higher to receive premium benefits.

The regions with the highest app uptake are the Blue Mountains, East Gippsland, Perth Hills, Yarra Ranges, Bega Valley, Shoalhaven, Gold Coast, Hobart, Adelaide Hills and the Great Ocean Road.

The Resilient Building Council hopes a multihazard resilience ratings self-assessment app could be available nationally in mid 2027, pending government funding.

“More banks, insurers and reinsurers are expected to come on board once we have expanded the free app and certification program to multihazard,” CEO Kate Cotter told insuranceNEWS.com.au.

Ms Cotter says the bushfire ratings app has delivered $219 million in private household upgrades, in “an impressive return on investment” for the Commonwealth’s $3 million contribution to the $9 million program.

Expanding to storm, flood and heatwave risks and to providing insurance discounts, resilience loans, free household support and national scale will cost $19.1 million over three years.

Government ministers are considering the proposal, Ms Cotter says.

NAB, IAG and City of Gold Coast have backed trials of the planned multihazard app.