Disasters are affecting the economy and the cost of recovery.

According to Deloitte Access Economics disasters cost Australia's economy $38 billion yearly. By 2060, this could reach $73 billion a year.

Costs are rising due to stresses in the natural and social environments, including:

• climate change
• more people living in exposed areas
• rising property values.

Investing in disaster risk reduction can:

• reduce vulnerability
• avoid loss and suffering
• lower future costs
• create economic and social benefits.

That's why we're working with our partners on several investment plans.

Enabling resilience investment

We're supporting the Commonwealth Scientific and Industrial Research Organisation (CSIRO) on this approach.

Enabling Resilience Investment is a framework for assessing and deciding how to:

• reduce disaster risk
• deal with climate change.

The goal is to develop risk mitigation opportunities for Australian communities. This will lead to:

• more jobs
• better infrastructure
• more social capital.

As a result, communities, regions and economies will be better placed to:

• recover from disaster
• build sustainable, adaptable and resilient futures.

Enabling Resilience Investment tools, products and services are available at CSIRO’s website.

Resilience investment vehicle pilot

For this pilot project, we're collaborating with:

• Insurance Australia Group
• National Australia Bank
• Queensland Reconstruction Authority
• Resilience NSW
• CSIRO.

The pilot is a response to reduced public capital for disaster reduction. Its aim is to:

• direct public and private capital to finance new infrastructure
• build community resilience
• reduce risk
• generate financial returns for investors.

Other goals include:

• proving the concept
• rolling out the approach to other regions
• build knowledge and skills for resilience investments
• develop a national resilience investment market.