Syna Hickmott, insurance manager at MAI Strata, emphasized the importance of these reforms, stating that they offer a practical route to both reduce insurance costs and improve building resilience to cyclones. By proactively implementing these mitigation measures, strata owners can not only enhance the safety and durability of their properties but also benefit from financial incentives in the form of lower insurance premiums.
The Cyclone Reinsurance Pool, established by the federal government, aims to improve cover affordability and accessibility in northern Australia. The pool provides reinsurance for insurers, enabling them to offer more competitive premiums to property owners who have undertaken approved mitigation activities. This initiative is particularly significant for regions like North and Central Queensland, which are prone to severe weather events and have historically faced higher insurance costs as a result.
In addition to federal initiatives, state programs are also supporting cyclone preparedness efforts. These programs may offer grants or subsidies to assist property owners in funding mitigation activities. Strata owners are encouraged to consult with their insurance providers and local authorities to understand the specific requirements and benefits associated with these programs.
Implementing cyclone mitigation measures not only contributes to the safety and resilience of strata properties but also aligns with broader efforts to manage climate-related risks. By investing in structural improvements, strata owners can play a proactive role in safeguarding their communities and reducing the financial impact of severe weather events.
Strata owners interested in pursuing these opportunities should begin by assessing their properties' current vulnerabilities and consulting with qualified professionals to develop a mitigation plan. Engaging with insurance providers early in the process can also help ensure that the planned activities meet the criteria for premium reductions under the Cyclone Reinsurance Pool and related state initiatives.
By taking advantage of these programs, strata owners in North and Central Queensland can achieve a dual benefit: enhancing the resilience of their properties to cyclones and realizing significant savings on insurance premiums. This proactive approach not only protects individual investments but also contributes to the overall stability and safety of the broader community.
