Australia’s new Guiding Principles for resilience investment set out how governments and insurers intend to direct risk‑reduction spending and respond to natural hazard exposure, providing a framework for future mitigation and disaster‑related infrastructure decisions under the Hazards Insurance Partnership (HIP). The principles have been released by the National Emergency Management Agency (NEMA) as part of the HIP, a forum involving the Australian government and senior representatives of the insurance sector.
The partnership is focused on affordability, availability, and underinsurance as more frequent and severe weather events intersect with rising property values, construction demand, and broader inflationary pressures. These factors have contributed to higher premiums and left some households and communities with limited access to cover in high‑risk areas. On March 13, 2026, the partnership agreed to and released the Guiding Principles for resilience investment, which NEMA says are intended to guide how mitigation initiatives and disaster‑related infrastructure are identified and prioritised.
The principles aim to provide a common approach for identifying and sequencing resilience projects that can reduce losses from natural hazards and support insurance market stability. According to NEMA, the framework emphasises collaboration between federal, state, and local governments; the insurance industry; and communities when selecting mitigation measures. It points to interventions at both the household and community level, ranging from property‑level upgrades to larger‑scale flood, cyclone, or bushfire protection works.
The principles also seek to support the recognition of risk‑reduction activities in insurance pricing and product availability, within competition law settings. Another focus is on using data and analysis to inform decisions while managing administrative costs and maintaining transparency in how resilience initiatives are assessed and funded. Assistant Minister for Emergency Management Josh Wilson said the partnership is intended to link resilience investment to insurance and economic outcomes. “By working together through the Hazards Insurance Partnership, governments and insurers are working to guide smarter investment in resilience that delivers benefits for households, communities, and the broader economy,” Wilson said.
The guiding principles sit within a wider program of insurance‑related work led by NEMA and other agencies. The Australian government has committed $22.6 million over four years to the HIP and a suite of Strategic Insurance Projects aimed at identifying where insurance availability and affordability are constrained, developing policy responses, and supporting recovery. Under this program, NEMA and its partners are:
A key output is the Natural Hazard Awareness Modules, which draw on research and consultation with states, territories and industry stakeholders. These resources are intended to align with jurisdictional disaster planning and to sit alongside tools such as the National Resilience Action Library, which brings together information on reducing the impact of bushfires, floods, and tropical cyclones on residential properties. NEMA is working with Treasury and the Australian Climate Service to progress these initiatives and to connect risk information, resilience measures, and insurance outcomes.
Insurer Suncorp has supported the release of the Guiding Principles, indicating that they may help provide greater consistency in how resilience is considered in the market and in public investment decisions. The principles form part of the HIP’s work with insurers and the federal government and are intended to inform how disaster funding and mitigation infrastructure – such as flood levees and property upgrades – are prioritised to reduce risk and, over time, influence insurance costs. Suncorp chief executive consumer insurance Lisa Harrison said the shared approach has implications for how the industry recognises resilience at the household level. “As a collective, we’re pushing for stronger, practical resilience measures that better protect communities, help families maintain their lifestyle, and ensure access to adequate and affordable home insurance,” Harrison said.
Suncorp has introduced tools and programs that link resilience measures with insurance outcomes. In 2024, the insurer supported the Resilient Building Council and the federal government to launch a bushfire resilience rating app that assesses a property’s capacity to withstand bushfire‑related damage and provides premium reductions for eligible customers. The insurer is also updating its digital platforms and policy systems to incorporate resilience data. “We’re now working to improve the digital experience for our customers and investing in updating our policy system so it can recognise resilience at scale,” Harrison said.
The HIP’s guiding principles and related projects represent a structured effort to connect mitigation activity and data availability with pricing, coverage terms, and product design. The focus on recognising risk reduction, improving information flows, and supporting public-private collaboration may affect how insurers incorporate resilience features into rating models, how they engage with government‑backed mitigation programs, and how they respond to protection gaps in regions with high natural hazard exposure. As the HIP and Strategic Insurance Projects advance, insurance professionals are likely to see increased attention on evidence of risk reduction, integration of resilience indicators into systems and reporting, and participation in cross‑sector initiatives aimed at managing affordability while maintaining risk‑based pricing.
