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ICA joins uni to research strata damage

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The Insurance Council of Australia (ICA) and James Cook University in Townsville have joined forces to identify factors in the design of strata title buildings that lead to unnecessary insurance losses.

It follows the release of an Australian Government Actuary report that says strata insurance pricing is undergoing adjustment because of risk and vulnerability.

ICA CEO Rob Whelan says vulnerability is “resulting in sizeable premium increases for these properties”.

He says the project will examine strata properties of varying ages and standards, quantify vulnerability and make appropriate risk-reduction recommendations.

“It will get information from insurance companies, which will be assessed by a methodology yet to be determined by James Cook University,” ICA spokesman Campbell Fuller told insuranceNEWS.com.au.

The completed methodology is expected within days, after which a James Cook team led by David Henderson will begin researching. Results are due by April.

“Assessing the vulnerability of strata title buildings in tropical Australia is an important piece of research that will help communities, governments and insurers to understand the impact cyclones and other extreme weather have on individual properties,” Mr Whelan said.

“Addressing the underlying risks to property presented by events such as cyclones remains the most appropriate course of direct action to address the rising insurance and community costs of climate-driven extreme weather.”