The Insurance Council of Australia has welcomed recommendations from a Victorian inquiry that include establishing a resilient homes scheme similar to those in NSW and Queensland.

The state parliament’s Legislative Council Environment and Planning Committee inquiry into climate resilience made 93 findings and 82 recommendations in a report this week.

ICA says key proposals include integrating “build back better” principles in post-disaster funding; having a centralised approach to updating flood modelling and integrating outcomes into planning schemes; and introducing a resilient homes program.

The programs in NSW and Queensland are run in partnership with the federal government and provide funding to enhance resilience, including through raising homes, rebuilding and relocating.

ICA says the Victorian inquiry findings align with its advocacy for strengthening climate resilience, and recommendations echo a previous probe into 2022 flooding in Victoria, which also proposed a resilient homes program.

“We encourage the Victorian government to embrace these resilience recommendations and establish a buyback scheme for properties facing extreme flood risk where there is no viable way to protect against the risk,” ICA said in a LinkedIn post.

Inquiry chair Ryan Batchelor says climate change’s impact on Victoria’s built environment is clear.

“Hotter summers [lead] to longer bushfire seasons, more intense rainfall events create new flooding patterns, coastal erosion continues apace, and we are experiencing more frequent high-intensity wind and storms,” he says in the inquiry report. “The scientific evidence presented to the committee was stark in demonstrating the reality that climate change is affecting our state.”

The committee took evidence from more than 130 witnesses, holding eight days of public hearings and travelling across regional Victoria.

Findings include that the rising cost and falling availability of insurance – particularly for properties newly designated as high-risk due to updated climate overlays – present a significant challenge to building climate resilience.

“Homeowners, businesses and local governments are facing escalating premiums, policy exclusions and financial strain that can undermine recovery and adaptation efforts,” the committee report says.

The report is available here.