IAG research finds LA wildfires increased customer appetite for natural disaster resilience action across Australia and New Zealand
New research from IAG, whose brands include NRMA Insurance, CGU, WFI and ROLLiN', has found the LA wildfires significantly increased community awareness and concern about natural disasters, with nearly 90% of Australians and New Zealanders indicating they will take proactive steps to protect their home and contents from bushfire or other extreme weather events.
The aim of this research was to understand the impact of the devastating LA
wildfires and whether or not such a high-profile natural disaster, in a densely populated suburban area, had encouraged people to consider their own extreme weather risks and the steps they could take to be better prepared in the event of a bushfire or natural disaster.
IAG Managing Director and CEO, Nick Hawkins said the January LA wildfires, and the more recent Victorian bushfires and Far North Queensland floods underscore how critical it is for governments, insurers and communities to work together on mitigation measures.
Key findings from the research* include:
- As a result of the LA wildfires, 49% of people are more aware of their safety and protection needs, including more than one in five (22%) who are much more aware
- Nearly half (48%) are more concerned about their safety and protection needs in the event
- of a bushfire, or another natural disaster or extreme weather event, including one in five (21%) who are much more concerned
- 86% of people say they will take proactive action to protect their home and contents from bushfire or other natural disaster including one in five (21%) who are much more likely.
- 46% of people are more likely to seek information on actions they can take to prepare for and respond to a bushfire or other natural disaster, including one in five (20%) who are much more inclined.
- 38% of people were aware some insurers offer premium reductions for customers who take preventative action against the risks of a bushfire or other natural disaster
- 58% of new homeowners in Australia and New Zealand researched the natural hazard risks specific to their property prior to purchase.
Events like the LA wildfires underscore the financial, social and emotional impact of disasters on communities, and how critical it is for governments, insurers and communities to consider the lessons to be learnedNick Hawkins
IAG Managing Director & CEO
"Our research shows half of the people surveyed in Australia and New Zealand are now more concerned about their safety and are far more inclined to take proactive steps to protect their home and contents from extreme weather events, such as bushfires," Mr Hawkins said.
"Critically, half of the people surveyed told us they are now more likely to seek information on the actions they can take to prepare for and respond to a bushfire. It's up to us as insurers with governments and other experts, including our partners at the Resilient Building Council, Australian Red Cross and Lifeline among others, to continue helping educate our customers and communities, and to get them the information they need.
"It also underscores the urgency of helping to protect at-risk communities with mitigation initiatives to save lives, property and infrastructure, which has the additional benefit of helping make insurance more affordable. This means more people can have the peace of mind and support insurance provides should the worst happen," Mr Hawkins said.
IAG's land planning, hazards and regulatory manager Andrew Dyer said IAG's research shows most homeowners (63%) are unaware that premium reductions may be available for customers who invest in home resilience measures, such as raising a home in a flood zone, or installing fire-safe building materials.
"For more than two decades, IAG's Natural Perils team has worked closely with communities, leading researchers and governments of all levels to improve the way we build for resilience and to raise awareness of the benefit to customers and their communities of knowing their natural hazard risks and investing in appropriate household resilience measures" Mr Dyer said.
IAG's NRMA Insurance introduced its Help Nation initiative to unite people, communities and organisations across Australia to prepare for extreme weather and know their local risks. As part of Help Nation, NRMA Insurance partners with Australian Red Cross to deliver free Australian Red Cross EmergencyRedi™ workshops and with Lifeline Australia to provide online resilience resources to help Australians mentally and emotionally prepare for and recover from extreme weather events. NRMA Insurance has been a long-term partner of the Resilient Building Council (RBC) and offers potential pricing benefits to customers who receive a three-star rating or above using the RBC's Bushfire Resilience Rating Home Self-Assessment app.
"IAG has long advocated for improved public access to the fundamental risk information that underpins our land planning and building codes so that home buyers have easy access to critical natural hazards information before they purchase a property.
"We're committed to helping our customers prepare and protect their homes from the significant risks posed by natural disasters and extreme weather events," Mr Dyer said.
