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2010 Australian Flooos

carl Hastrich Business ano Design Thinking

Photograph by Daniel Munoz, Reuters
Screenshot of Interactive Map:
Australias 8ro largest city, population 2M
!.!0m / 1!.0t maimum height.
11,000 homes ano 2,o00 business completely loooeo.
1!,700 homes ano 2,o00 business partially loooeo.
07 suburbs aecteo.
Image from Nasa Observatory:
Larger than Teas ano caliornia combineo
7o' o the state oeclare a oisaster zone
70 towns aecteo
NASA. Original uploader was Peaceworld111 at en.wikipedia
8o people killeo.
2.1M people aecteo.
Flooos not co\ereo
by most insurance
Deinition o Flooo.
What occurs when there are hea\y, intense bursts o rainall,
usually ouring thunoerstorms where so much water alls in
a \ery short time that it cannot get away uickly enough
ano collects ano lows into your home, but ooes not incluoe
when rainwater on the site cannot run o into a water
catchment system, because it is o\erlowing in looo, ano
mies with the looo water coming rom the water
catchment system ano then lows into your home.
Justine Bell
Insurance for Extreme Weather Events in Australia Current Policy Trends, and Future Directions
Flash loooing (rainwater rom sky) co\ereo in
storm co\erage.
Ri\erine loooing (water rising rom ri\ers,
creeks ano storm water) not co\ereo.
I rain ell, pooleo in a backyaro
or a street, ano then entereo the
property, it is oiicult to
oetermine which category it
woulo all unoer.
Justine Bell
Insurance for Extreme Weather Events in Australia Current Policy Trends, and Future Directions
Final cost or Disaster
Reco\ery. $o.0B
Source: Press Office of the Prime Minister of Australia
Source: The Australian
Ta Payers askeo to oot
$1.8B through progressi\e
Earn unoer $o0,000 - no le\ee
Earn between $o0,000 ano $100,000 - 0.o' ta
Earn abo\e $100,000 - 1' ta
Source: Press Office of the Prime Minister of Australia
Future o Flooo
E\ery loss
e\ent is an
E\ents. An Opportunity to
Impro\e Mooels
The earthuakes in chile, New Zealano ano Japan
oramatically re\ealeo the importance o losses that oo not
oirectly result rom grouno shaking but rom seconoary loss
agents such as tsunamis, atershocks, soil liueaction,
business interruption, or contingent business interruption.
The recent earthuakes ha\e pro\ioeo us with a uniue
opportunity to enhance the way we mooel these eects.
While we upoateo our proprietary natural catastrophe
mooels within months ater the e\ents, e\en tooay, many
commercially a\ailable earthuake risk mooels oo not yet
consioer these learnings.
Quote from Swiss Re Annual Report 2011
At the eno o 2000, about 8 per cent
o Australians were co\ereo or
looo, accoroing to the Insurance
council o Australia, by the eno o
2012, 8o per cent o policies will ha\e
looo co\erage.
uestion rom Insurance.
Is it ok to return to normal?
What is the risk o it happening again?
(Also the uestion rom Australian tapayers)
cartography Boom!
A\erage Premium = $1,277
A\erage Premium = $8,807
Ban on new co\erage
In Roma, they spent $11
million on rescue] helicopters
ater the looo e\ent... but they
woulont ha\e hao to oo it i
theyo built a le\ee costing] $0
or $10 million.
Mark Miller, cEO o Suncorp (which i oereo looo co\erage as a
non-negotiable since 2000)
Source: The Global Mail
A\erage Premium = $1,277
Banneo rom Insurance
Banneo rom Insurance
To remo\e the insurance ban.
- builo a new orainage system
- change builoing stanoaros
- ban new housing estates on looo plains
- change builoing typology
Source: The Global Mail
Sounos crazy?
Sunos\all Sweoen
1888, burnt to the grouno.
Swiss Re oemanoeo the city to be rebuilt using
stone (it was).
Reinsurance is a proouct, but also a carrot in the
negotiation between culture ano reality, it lets
societies know what habits are unsustainable.
Justine Bell
Insurance for Extreme Weather Events in Australia Current Policy Trends, and Future Directions
A] Prooucti\ity commission report shows
annual eoeral go\ernment spenoing on oisaster
mitigation has allen to }ust $20 million oollars
in 2010-11. There was no aooitional money or
looo mitigation in the 2012 eoeral buoget.
Mark Miller
Source: The Global Mail
The total igure or all emergency assistance
to Australians since December 2010 is in ecess
o $800 million.
Mark Miller
Source: The Global Mail
Does not look like
things are changing.
Themes ano challenges o
Report rom the Australian Co\ernment
Nothing about
oisaster mitigation.
What about Le Matthews?
Socio-Economic Capacity
Diversity of Choices
Low High
Len is here.
Retiree on oisability pension
Marginalizeo rom ser\ices.
Their lano \alue is alling.
Their costs are rising.
Incapable o builoing their own
Being tolo they shoulont be li\ing
where they are.
But they are in the only place they
can aoro.
This is }ust one
Ano the looos o ueenslano are not the
only place acing the same issues.
Rebuiloing in Bushire Areas.
High risk bushire locations reuire new
inrastructure. Resioents not capable o mo\ing, are
rebuiloing homes, with increasingly unaoroable, or
non-eistent insurance options.
Aging Inrastructure is
increasing risk o oamage.
Water inrastructure backlog o $1.7B in the city o
Source. cTV News
Insurance companies aooing clauses not to co\er
aileo go\ernment inrastructure.
Further marginalizing those who can not aoro to
co\er the increaseo risk, that is out o their control to
Ceneral Stakeholoer O\er\iew
To begin the process, a broao stakeholoer map was generateo
to communicate the broao parties in\ol\eo in oisaster situations,
incluoing those the oe\elop ano oer ser\ices ano those who
use these ser\ices.
Ceneral Stakeholoer O\er\iew
Ceneral Stakeholoer O\er\iew
Insurance (looo) Speciic
Stakeholoer O\er\iew
A reineo o\er\iew o stakeholoers emergeo speciic to the
issue o people being marginaliseo rom insurance ser\ices.
Each stakeholoer has been presenteo with three neeosor
moti\ations oepenoing on the perspecti\e.
Insurance (Flooo) Speciic
Stakeholoer O\er\iew
Insurance (Flooo) Speciic
Stakeholoer O\er\iew
Insurance (Flooo) Speciic
Stakeholoer O\er\iew
Insurance (Flooo) Speciic
Stakeholoer O\er\iew
There are complicateo relationships between public ano pri\ate
partnerships, which make up nearly all ma}or inrastructure
oe\elopments. Co\ernment unoing are nearly always in\ol\eo,
ano oirectly linkeo to regulatory guioelines.
Insurance (Flooo) Speciic
Stakeholoer O\er\iew
Insurance (Flooo) Speciic
Stakeholoer O\er\iew
Socio-Economic Capacity
Diversity of Choices
Low High
Inluence to Impact Diagram
Rather than present a hierarchy o the abo\e neeos /
moti\ations, I chose to oe\elop a oiagram that communicates
the oisparity between the power to inluence a oecision ano the
impact elt by the ramiications o oecisions.
Inluence to Impact Diagram
Public & Private
Flood Affected
Low Socio-Eco
Flood Affected
High Socio-Eco
High Influence
Over Decision
Highly Effected
By Decision
Minimally Effected
By Decision
Minimal Influence
Over Decision
Queensland Floods Anniversary: Brisbane
Flood. Radio National Podcast, available
Queensland Floods Facts. Website,
available at: http://liberalsprinkles.blogspot.
Toronto`s aging infratructure costing
millions. CTV News online, available at:
2010-2011 Queensland foods. Wikipedia
The Truth is in the Flood Maps Part One.
The Global Mail, by Ellen Fanning, May
17, 2012, available online: http://www.
The Truth is in the Flood Maps Part One.
The Global Mail, by Ellen Fanning, May
18, 2012, available online: http://www.
Rebuilding after the foods. Press from the
Prime Minister of Australia, January 27,
2011. Available online:
Bell, Justine (2011). Insurance for Extreme
Weather Events in Australia Current
Policy Trends, and Future Directions.
Business and Economics.
2011 Financial Report. Swiss Re. Internal
Greeley, Brendan (2011). The God Clause.
Bloomberg Businessweek Magazine.
Lloyds (2012). Realistic Disaster
Scenarios. Internal Document.
Grimsey, Darrin. Lewis, Mervin K
(2000). International Journal of Project
Dr. Goode, Natassia et al (2011). Review
of Recent Australian Disaster Inquiries.
Monash University.
Justimes C E Holmes - commissioner
(2012). Final Report. Queensland Flood

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