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Insurance and weather in Australia
This Case Study discusses the concept of risk management and how insurance is vital in managing business, economic and societal risk. It also examines how our communities can be made safer and more resilient to natural disasters.
As a result of reading this Case Study, students should be able to:
- Explain what insurance is and how it works
- Describe the concept of risk management
- Understand the effects of natural disasters on Australia's economy, businesses and society
- Discuss how communities can use preventative measures to increase resilience and manage risk
NRMA Insurance and CGU Insurance are part of Insurance Australia Group (IAG) and offer personal and business insurance products in Australia.
Insurance is about a group of people in a community sharing risk. A large number of people pay a small amount of money (known as a premium) into an insurance ‘pool’ to cover for any losses they may sustain through unforeseen circumstances.
Australia has suffered some of the world's largest natural disasters. Over the past five years, floods, bushfires, cyclones and hailstorms have cost billions of dollars to private property and public infrastructure.
Much of the focus of responses to natural disasters usually centres on the cost of physical damage to property. But the impact on an individual and community’s wellbeing is of even greater concern.
Prevention is always preferable to cure. To achieve this, we need to identify ways to implement resilient and sustainable economic, social and environmental outcomes to safeguard our future.
Insurance is a key part of the nation’s economy, and is critical for managing risk within our businesses and communities.
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