Insurers on standby as Alice Springs flood emergency continues

Emergency declaration holds as shelters close and roads remain blocked

Insurers on standby as Alice Springs flood emergency continues

Catastrophe & Flood

By Roxanne Libatique

Emergency powers remain in place across parts of Central Australia as authorities monitor flood conditions in Alice Springs and the wider Barkly region, with insurers and risk professionals considering potential impacts on claims and local risk management. The Northern Territory government activated its emergency arrangements on March 1 under the Emergency Management Act for areas south of Tennant Creek and the Simpson forecast district, including Alice Springs, following advice from the Territory Emergency Management Council and the Bureau of Meteorology (BoM).

A Southern Region emergency operations centre has been established in Alice Springs, with NT Police leading a multi-agency response involving emergency services and other government bodies. Deputy regional controller James Gray-Spence said the declaration gives authorities flexibility to manage public safety as conditions change. “What that enables us to do … is it enlivens powers under the Emergency Management Act … to direct people to do things or stop doing things, to move people out of areas, like away from floodwaters,” Gray-Spence said, as reported by ABC

Local disruption and behaviour in floodwaters

Centralian Middle School and Centralian Senior College were closed to students on March 2 and used as evacuation centres. About 25 people stayed at Centralian Middle School overnight, with more arrivals reported the following morning, while no evacuees had presented at Centralian Senior College early Monday. SecureNT later advised that flood conditions in Alice Springs had eased to an advice level. Shelters at both schools closed at 3pm on March 2 as the immediate risk of higher flood levels reduced, although the emergency declaration remains in force.

Flooding has caused disruption across the town, including causeway closures and traffic detours. Police and emergency services have urged the public to stay away from fast-moving water and to comply with official directions. NT Police Watch Commander Alistair Gall said officers had attended several incidents involving people entering floodwaters despite warnings. “It’s quite alarming to see people swimming in the river at any time,” Gall said. Gray-Spence said incidents in and around floodwaters that could be avoided may draw resources away from other work. “The golden rule is, if it’s flooded, forget it,” he said. Some local businesses have sandbagged shopfronts, and supermarkets have reported minor interruptions to deliveries because of transport issues. Residents have been advised to monitor SecureNT updates, avoid driving through floodwaters, and be prepared for conditions to change quickly. 

Generational gap in readiness raises issues for insurers

While authorities in Alice Springs manage the immediate response, insurers are referencing national research that points to ongoing shortfalls in household readiness for severe weather, including floods. Recent NRMA Insurance research identifies a skills and knowledge divide between younger and older Australians in preparing homes for extreme weather. According to the findings, 30% of Gen Z and 26% of Millennials say they do not know what steps to take to get ready for severe weather, compared with 16% of Gen X and 8% of Baby Boomers. Older respondents report greater familiarity with required tasks but are more likely to need physical assistance to complete them. The research indicates that younger groups are more likely to rely on formal warning systems and emergency services, with fewer practical skills being passed on between generations. For insurers and intermediaries, this may affect both the frequency and severity of property losses when heavy rainfall and flood events occur in exposed communities such as Alice Springs. 

Surveys show low awareness of basic preparation standards

Additional research from AAMI and Youi points to broader gaps in awareness of basic preparation timeframes and actions. AAMI’s national survey of more than 2,000 adults, conducted by Pure Profile in October 2025, found that only 9% of respondents correctly identified Sept. 1 as the official start of storm season. Around two-thirds were unable to name the date, and about one-quarter believed there is no official start to the season. The same study reported that 78% of respondents did not know that key storm-readiness tasks – such as clearing gutters, trimming branches, and checking roofs – should be carried out four times a year. Knowledge of this recommended frequency varied by state, with respondents in Queensland most likely to answer correctly, followed by Western Australia, Victoria, and New South Wales. 

Separate research by Youi, also based on more than 2,000 participants, found that 81% of respondents had experienced extreme weather, but fewer than 40% felt adequately prepared to respond. Only 17% had developed and practised a comprehensive emergency plan, and 41% said they were unsure what steps to take during a disaster. Almost one in five reported that they had not undertaken any preparedness activity in the previous year.

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