The floods that devastated parts of southeast Australia last month revealed, yet again, this nation’s growing insurance problem. Assessment of the damage was agonisingly slow, and rising premiums meant many victims were completely uninsured.
The disaster was part of a global trend towards localised, sudden and intense weather known in the insurance industry as “secondary perils”. These events, such as thunderstorms, hail, bushfires, drought, flash floods and landslides, are less severe than single, huge catastrophes such as a massive earthquake or cyclone.
But they can happen frequently – and still leave a big damage bill and displace thousands of people.
