One of the issues that featured in the Strata Climate Research was the strata insurance crisis that resulted from cyclones in Northern Queensland in 2011.
It's been the subject of Government enquiry and many suggested changes and the latest episode is the release of further discussion paper on the topic as reported by Strata Community Australia.
You can find the discussion paper, Addressing the high cost of home and strata title insurance in North Queensland here.
Researching climate change challenges for Australian strata & community title stakeholders
Wednesday, May 21, 2014
Monday, May 12, 2014
The Research is Over, but NCCARF Continues
Whilst our strata & community title climate change research project has ended, the work being done by NCCARF on climate change adaptation issues continues.
You can follow NCCARF activities, latest research, conferences and more here.
You can follow NCCARF activities, latest research, conferences and more here.
Friday, September 6, 2013
Griffith University Conference Presentation Now Online
You can download a copy here.
Monday, August 26, 2013
Research Presentation at Griffith University Conference
On Thursday, 5 September, Francesco Andreone will be presenting a summary of the NCCARF research project and findings Adapting strata and community title buildings for climate change at the Griffith University Strata& Community Title in Australia Conference on the Queensland Gold Coast.
You can find our more about the conference here
You can find our more about the conference here
Wednesday, June 19, 2013
Final Report Released
The final report, Adapting strata and community title buildings for climate change, is finished and published on the
NCCARF website.
View the report here: www.nccarf.edu.au/publications/strata-title-buildings-climate-change
Please share the link with your colleagues and anyone who might be interested. And, if you have any relevant supplementary information (summary documents, fact sheets, videos etc.), please send it to us.
NCCARF website.
View the report here: www.nccarf.edu.au/publications/strata-title-buildings-climate-change
Please share the link with your colleagues and anyone who might be interested. And, if you have any relevant supplementary information (summary documents, fact sheets, videos etc.), please send it to us.
Wednesday, June 12, 2013
Stakeholders Manual Released
The stakeholder manual, Adapting strata title communities for climate change: a stakeholder action list manual, is finished and published on the NCCARF website.
View the manual here: www.nccarf.edu.au/publications/strata-title-stakeholder-manual
Please share the link with your colleagues and anyone who might be interested. And, if you have any relevant supplementary information (summary documents, fact sheets, videos etc.), please send it to us.
View the manual here: www.nccarf.edu.au/publications/strata-title-stakeholder-manual
Please share the link with your colleagues and anyone who might be interested. And, if you have any relevant supplementary information (summary documents, fact sheets, videos etc.), please send it to us.
Sunday, February 3, 2013
Identifying Strata Climate Change Stakeholders
Studying the impacts and challenges of climate change for strata and community title buildings involved identifying the key stakeholders. That has allowed us to interview and survey the right people, develop profiles for each category and think about their interests, needs, skills, weaknesses and abilities.
So, how are they and why do they matter?
Developers - are a key stakeholder group since they create strata and community title buildings so have significant influence on location, configuration, design, features and quality which are probably the most significant things affecting building resilience.
Government - are also a key stakeholder for similar reasons to developers. They also have significant influence over building location, configuration, design, features and quality through planning and other controls. But Government also has other interests, including regulating the operation of strata and community title buildings for their lifetime and dealing with the immediate and longer term effects of emergency weather events.
Owners & Executives - are the key stakeholder in this study since they own and run the strata and community title buildings and therefore make all the decisions. But, perhaps more importantly owners pay for the effects of climate change on buildings: either as levies to repair and upgrade them; or as increased operating and insurance costs; or by suffering rental and value losses.
Strata Managers - play a vital role in strata and community title building operation since apart from providing contracted administration services they are key influencers of owner behaviours and can identify key issues, educate stakeholders about options and become champions for initiatives. Conversely they can easily impede building adaptation due to lack of awareness, resources and/or motivations.
Resident Managers - like strata managers, resident managers have a key influencer role in strata and community title buildings. But, because they operate on site and have more intimate understanding of the buildings, they are the frontline of building management, upgrades and emergencies and so are often best placed to know and assess what is [and is not] needed.
Sinking Fund Forecasters - as the industry sector advising strata and community title buildings about the need for future building repair, maintenance and replacement, sinking fund forecasters have good knowledge of the physical needs and shortcomings of the buildings. That places them in a key position to also assess and factor in climate change impacts, adaptation options and funding possibilities that go beyond routine works.
Insurers - as the last place strata and community title owners look to if climate change damages or destroys their building, insurers are a critical stakeholder in the sector strategies for strata and community title buildings to adequately cope with the impacts of climate change. The increased frequency of extreme weather events and consequent crises in strata insurance cover have highlighted the significance of insurance and the fragility of this 'last resort' protection. So, the future role of insurance and insurers in strategies for strata and community title building to deal with climate change induced weather damage and deterioration needs careful consideration.
By considering the impacts, options and realistically achievable changes from the perspectives of each of these stakeholders groups, the research hopes to find mutually acceptable and beneficial solutions to the challenges faced by all strata and community title stakeholders in dealing with climate change.
Thursday, January 31, 2013
The Strata Building Durability Dilemma
The Strata & Community Australia Linkedin Group recently included this discussion thread started by Peter Greenham about strata building durability.
The issues he identifies link closely to many of the findings and recommendations of this research.
Peter has identified an interesting contradiction between building construction controls, strata repair & maintenance obligations and what's good for strata corporations and strata owners. We've seen this in the Griffith University & NCCARF research we're doing on climate change impacts on strata buildings.
Building standards are [as you point out] mostly focused on structural integrity and human safety which don't necessarily equate to more durable and sustainable buildings. But, strata corporation's have never ending obligations to maintain and repair the buildings [regardless of cost] and when they deteriorate or are destroyed [usually by adverse weather] to replace them.
What strata corporations and strata owners ideally need are more durable, low maintenance and resilient buildings. But that's not happening at the development phase for many reasons and strata owners are reluctant to invest in improved building durability and sustainability. And, when the building is damaged and repaired using insurance proceeds, it's not usually possible to improve the structures since that's 'betterment' and not covered under most policies.
There have already been and are more changes coming to improve building sustainability but they are more focused on energy use than durability, they will take a while to filter into strata buildings and they won't address existing strata stock.
So, strata corporations and strata owners will likely continue to suffer the problem of long term obligations to maintain, repair and replace buildings that were designed to be strong and safe but not, necessarily, durable.
The issues he identifies link closely to many of the findings and recommendations of this research.
Peter has identified an interesting contradiction between building construction controls, strata repair & maintenance obligations and what's good for strata corporations and strata owners. We've seen this in the Griffith University & NCCARF research we're doing on climate change impacts on strata buildings.
Building standards are [as you point out] mostly focused on structural integrity and human safety which don't necessarily equate to more durable and sustainable buildings. But, strata corporation's have never ending obligations to maintain and repair the buildings [regardless of cost] and when they deteriorate or are destroyed [usually by adverse weather] to replace them.
What strata corporations and strata owners ideally need are more durable, low maintenance and resilient buildings. But that's not happening at the development phase for many reasons and strata owners are reluctant to invest in improved building durability and sustainability. And, when the building is damaged and repaired using insurance proceeds, it's not usually possible to improve the structures since that's 'betterment' and not covered under most policies.
There have already been and are more changes coming to improve building sustainability but they are more focused on energy use than durability, they will take a while to filter into strata buildings and they won't address existing strata stock.
So, strata corporations and strata owners will likely continue to suffer the problem of long term obligations to maintain, repair and replace buildings that were designed to be strong and safe but not, necessarily, durable.
Wednesday, January 30, 2013
Unaffordable Australian Flood Insurance
One of the key findings of our research is that insurance is the key strategy adopted by most strata buildings for adverse climate change impacts.
So, the availability, extent of cover and affordability of insurance cover is a crucial factor and that's become an increasing problem throughout Australia in recent times.
This article in Property Observer reveals that it's worse than many people my think. Although the article focuses on free standing homes the problem extends to strata buildings when (and if) they can get flood insurance.
The article states that Queensland flood insurance offered by Allianz ranges from $8,200 to $19,000 per dwelling, that flood cover can cost from 7 to 17 times more than home insurance without it and 4 out of 5 domestic building insurance policies include flood cover.
And since the 2012 Federal Government recommendations do not make flood cover mandatory or contain premiums for the cover, it's likely the situation will continue to worsen for affected strata owners.
So, the availability, extent of cover and affordability of insurance cover is a crucial factor and that's become an increasing problem throughout Australia in recent times.
This article in Property Observer reveals that it's worse than many people my think. Although the article focuses on free standing homes the problem extends to strata buildings when (and if) they can get flood insurance.
The article states that Queensland flood insurance offered by Allianz ranges from $8,200 to $19,000 per dwelling, that flood cover can cost from 7 to 17 times more than home insurance without it and 4 out of 5 domestic building insurance policies include flood cover.
And since the 2012 Federal Government recommendations do not make flood cover mandatory or contain premiums for the cover, it's likely the situation will continue to worsen for affected strata owners.
Sunday, January 27, 2013
North Queensland Buildings Face Ex-Cyclone Oswald in 2013
This Courier Mail update (as at 27 January 2013) outlines the affected areas.
Tuesday, January 22, 2013
Climate Change Questionnaire Findings: Executive Summary
The research study survey results have now been collated and a summary of the findings and resulting recommendations prepared.
It makes interesting reading and you can download a copy here.
It makes interesting reading and you can download a copy here.
Tuesday, November 6, 2012
8 New Research Recommendations
So, 8 supplementary recommendations have been distilled from the suggestions provided by the questionnaire respondents. The following text identifies each recommendation and provides a supporting rationale for each recommendation.
Supplementary Recommendation 1:
Professional and other non-government bodies
such as Strata Community Australia
and Green Strata to develop a list of
experienced consultants and/or recommended experts who can be engaged to advise
owner committees that wish to undertake climate change building adaptation
planning and work.
Since owners in
S&CT buildings, strata managers and also resident managers are unlikely to
have particular climate change building adaptation expertise, they will need
advice and guidance. If seeking climate change advice, these key stakeholders
are likely to seek information from experts in the field. This is particularly
so, given that climate change advice represents a relatively new expert
discipline. Since the expertise is developing as both a discrete discipline and
also part of more general building technology disciplines, a dual expertise
identification approach should be taken.
Comments made by a
representative of Green Cross Australia
suggest that relative to the potential demand for this type of advice by
S&CT buildings, there is likely to be a shortage of experienced people
available at the time of preparing this report. We see this factor as providing
additional support for this recommendation, as increased visibility given to
experts in the field would likely result in more professionals seeking to
develop a climate change S&CT building adaptation expertise. This signifies
that in the early years in particular, the list would need to be updated
regularly.
In addition to
providing details of appropriate consultants and experts, the list could also
provide information on the kind of experience advisors should have and also the
types of questions that S&CT building committees and managers could ask
potential advisors.
Supplementary Recommendation 2:
Government (national, state and/or local)
and private sector organisations with vested interests (like insurers and
lenders) to subsidise climate change adaptation works on one or more typical
strata title buildings in order to provide a model of the type of climate
change adaptation works that can be undertaken and to showcase the benefits.
Since awareness
levels about climate change, climate change impacts, appropriate adaptation
works and the resultant benefits appear to be low amongst strata and community
title stakeholders, information and examples to help them understand what
adaptation works can be undertaken are particularly important. The existence of examples of what
climate change adaptation works can be achieved would be a valuable resource
that could be drawn upon by any climate change adaptation champions working or
living in S&CT buildings.
It is notable that
the creation of model examples of S&CT building actions and options have
already been pursued by government in connection with ecologically sustainable
development and other environmentally sustainable initiatives.
Supplementary Recommendation 3:
Resident manager and strata manager
contracts to include provisions covering the type and extent of their
responsibilities and authorities in the event of an emergency incident.
Enquiries made by
the research team suggest that it is rare for current strata manager and
resident manager contracts to contemplate weather emergencies. The absence of
such provisions creates unnecessary uncertainty with respect to who is
responsible for what actions, should such an emergency event occur. Emergency
event management can be expected to proceed more smoothly and in a more
expeditious manner should clarification be given to the obligations of strata
managers and resident managers, with specifications given with respect to what
actions they should and should not take. If such matters are contracted for, a
provision should also be made for a manager receiving appropriate remuneration
for emergency event responsibilities undertaken.
Developing a set of
pro-forma provisions for strata manager and resident manager contracts is
recommended. Such provisions could then be adopted or modified to suit
individual S&CT buildings, strata manager and resident manager situations.
Such provisions should include mechanisms that would allow changes to be made
to some of the more specific details of the emergency actions, in light of
evolving technologies and knowledge.
Supplementary Recommendation 4:
Insurers should base insurance risk
assessment on a building’s specific characteristics, not just its geographical
location. Basing insurance premiums on a building’s specific characteristics,
which incorporate climate change resilience, will provide unit owners with an
incentive to invest in adaptation to improve a building’s climate change
resilience.
Since insurance
premiums are not being based (in most cases) on specific S&CT buildings’
resilience, there is a diminished incentive for owners to invest in improving
S&CT buildings’ resilience.
Requiring more building specific risk assessment by insurers would
result in a fairer building resilience assessment, more appropriate and
equitable premium allocations, as well as greater clarity for S&CT building
owners with respect to how investment in building adaptation can result in
decreased insurance premiums. Ideally, any building resilience investments and
climate change adaptation works that reduce insurance premiums should have
universal insurance sector approval, so that S&CT buildings that have
undertaken such works would have the benefits recognised in premiums quoted,
regardless of the insurance provider.
Challenges
associated with implementing this recommendation include identifying the
infrastructure characteristics that affect building resilience from an insurance
risk perspective, ensuring that adaptations are universally recognised by
insurers and the additional costs incurred by insurers in connection with
conducting building specific insurance assessments.
The development of
any new risk assessment guidelines should be made in
conjunction with the work of the Australian
Resilience Taskforce, which is an
initiative of the Insurance Council of Australia that is intended to
provide a platform for collaboration, and alignment across government, industry
and non-government organizations to enable increased resilience in Australian
communities (www.buildingresilience.org.au).
Supplementary Recommendation 5:
Insurance companies to provide strata title
schemes with a policy option to insure for infrastructure upgrades, in the
event of a claim, not simply for the cost of replacement. Such upgrades could
be conducted in a manner consistent with engineering greater building climate
change resilience.
Currently, ‘like
for like’ replacement policies for S&CT buildings and the strata and
community title law obligations to ‘keep in good and serviceable repair’
signify that S&CT buildings will almost invariably install equivalent
replacement structures following weather damage. So, an opportunity for
improvement and engineering better climate change resilience is lost.
A challenge in
implementing this recommendation would likely stem from an apparent widely held
insurance industry culture that is opposed to ‘betterment’. A second problem in
implementing this recommendation concerns how ‘betterment’ could be handled in
a S&CT building insurance policy. One way of dealing with this issue could
be to include a policy clause that allows replacement of infrastructure with
infrastructure that is (say) up to 25% more expensive than a ‘like for like’
replacement.
Supplementary Recommendation 6:
Government and industry based training
courses directed to strata title unit owners, committee members, managers and
other stakeholders to include a ‘prepare your strata title building for climate
change’ component.
As part of a wider
effort to promote strata and community title stakeholder education, training on
climate change issues and challenges should be made available to all key
stakeholders. Since the knowledge in question is largely universal to all
stakeholders, a generic training module that is appropriate for owners,
committee members, strata managers and resident managers could be developed.
Supplementary Recommendation 7:
A pro forma disaster management plan or
plans for strata title communities should be developed by government and/or
non-government bodies and made available on a government and privately
maintained “prepare your strata title building for climate change” website.
There are already
many resources concerning weather emergencies and other disasters, but in only
very limited situations do S&CT buildings adopt them. It appears that even when adopted in
the S&CT building context, they are for limited kinds of emergencies.
Yet much of the
information and knowledge is universally applicable. So, developing pro-forma
disaster and emergency management plans that can simply be adopted or modified
to suit individual S&CT buildings’ needs is recommended. Similarly,
associated information for owners, residents and other stakeholders can be
prepared to inform them of possible plans and important details.
It is notable that Green Cross Australia’s www.hardenup.org
website contains pro forma information for tenants about extreme weather
preparedness. This was developed in conjunction with the Residential Tenancies Authority. This resource would provide valuable input to the design of
any government initiated pro forma disaster management plan that is tailored to
the S&CT context.
Supplementary Recommendation 8:
As part of the building development and
construction approval process, require that an evacuation plan and general
disaster management plan be included in a scheme’s original documentation
prepared by developers.
Associated to the
recommendation about pro forma disaster management plans is this recommendation
that developers should prepare and include such plans as part of the original
documents for S&CT buildings. Implementation of this recommendation would
result in all new S&CT buildings having such a plan and the plan should be
made readily available to all owners and residents. If pro forma plans are available (as per the previous
recommendation) then developers could simply adapt them to the particular needs
of each building that they develop. This practice would also focus developer
attention on climate change and weather emergencies before S&CT buildings
are completed. Over time, this can be expected to influence the design of
S&CT buildings in a manner consistent with better preparedness for climate
change.
Wednesday, October 31, 2012
IPCC Report Contains Detailed Information on Climate Change
Earlier this year the Intergovernmental Panel on Climate Change [IPCC] released its latest report on global climate change trends, information and impacts. It's the fifth version of the report published by IPCC.
It's a detailed analysis compiled by the world's leading experts and essential reading for anyone who wants to properly understand the current state of knowledge about climate change. Over 600 researchers have contributed to the report and it's taken almost 2 years to finalise.
The full reference to the report is -
and you can find a copy of the latest report here.
It's a detailed analysis compiled by the world's leading experts and essential reading for anyone who wants to properly understand the current state of knowledge about climate change. Over 600 researchers have contributed to the report and it's taken almost 2 years to finalise.
The full reference to the report is -
IPCC, 2012 - Field, C.B., V. Barros, T.F. Stocker, D. Qin, D.J. Dokken, K.L. Ebi, M.D. Mastrandrea, K.J. Mach,
G.-K. Plattner, S.K. Allen, M. Tignor, and P.M. Midgley (Eds.)
G.-K. Plattner, S.K. Allen, M. Tignor, and P.M. Midgley (Eds.)
Available from Cambridge University Press, The Edinburgh Building, Shaftesbury Road, Cambridge CB2 8RU ENGLAND, 582 pp.
and you can find a copy of the latest report here.
Wednesday, October 17, 2012
Information About Weather Events & Damage
One of the ways we're moving this study forward is to develop a listing of weather events resulting from climate change
that can inflict building damage such as:
- Flooding
- High wind
- Hail damage
- Extreme heat damage on buildings
- Bush fire
- etc
And, then for
each of these weather events, we will develop
a listing of the type of building damage resulting from them.
If you have information on either of these things, email us.
Friday, September 14, 2012
WA Research on Greening Strata Schemes
There's very little research available on strata and community title buildings to start. And, there's even less on the environmental issues they face.
So, this study by Chiara Pacifici of Curtin University called Greening Strata Title Schemes in WA: Turning barriers into opportunities for individual owners toimplement environmentally sustainable provisions inexisting residential strata dwellings is a welcome addition to the knowledge and thinking base in the area. Plus it has wider relevance and application.
In the study, Chiara Pacifici looks at the structural legal impediments that affect 'green initiatives' in strata buildings. In particular, how the kinds of approvals required for most environmental upgrades in strata buildings by strata corporations or owners need three quarter (or higher) decisions and are therefore a lot harder to achieve. She also considers how these impediments can be appropriately modified and suggests some law reforms.
Interestingly, the strata decision making problems identified in the study apply to other strata issues too - including climate change adaptation works. So, the analysis and her ideas are a useful addition to our study of the challenges facing strata and community title stakeholders in dealing with climate change weather impacts.
So, this study by Chiara Pacifici of Curtin University called Greening Strata Title Schemes in WA: Turning barriers into opportunities for individual owners toimplement environmentally sustainable provisions inexisting residential strata dwellings is a welcome addition to the knowledge and thinking base in the area. Plus it has wider relevance and application.
In the study, Chiara Pacifici looks at the structural legal impediments that affect 'green initiatives' in strata buildings. In particular, how the kinds of approvals required for most environmental upgrades in strata buildings by strata corporations or owners need three quarter (or higher) decisions and are therefore a lot harder to achieve. She also considers how these impediments can be appropriately modified and suggests some law reforms.
Interestingly, the strata decision making problems identified in the study apply to other strata issues too - including climate change adaptation works. So, the analysis and her ideas are a useful addition to our study of the challenges facing strata and community title stakeholders in dealing with climate change weather impacts.
Thursday, September 13, 2012
Overcoming Strata Decision Making Barriers to Climate Change Adaptation
One of the issues this study has already identified is the existence of structural barriers to adaptation in existing building for climate change.
In most Australian states making the changes and upgrades to common property structures and acquiring the additional equipment needed to make 'green' improvements to the building is not included within normal repair and maintenance and will be classified as upgrades. And, upgrades require higher level approvals.
In most states a a special resolution (three quarter majority) is required but in the ACT and for South Australian community schemes where the upgrades costs more than $5,000, an approval by unanimous resolution is necessary.
So, environmental upgrades are harder to approve and implement than ordinary repairs - reducing the likelihood of them happening. That includes many of the changes a strata building might need to make to adapt itself to improve its resilience to climate change weather effects.
But, one Australian exception exists in the ACT where the new (2011) strata legislation permits upgrades and additions for installation of sustainability or utility infrastructure on the common property with only an ordinary (simple majority) decision. This facilitates these kinds of upgrades. But the definition of “sustainability infrastructure” is limited covering only infrastructure and equipment that improves the environmental sustainability of the units or reduces the environmental impact of the owners corporation and the unit owners (including related utility service connections and equipment.). The laws cite examples such as - solar panels, clotheslines, rainwater tanks.
But even these reduced approval thresholds may not apply to climate change adaptation work that is not also sustainability infrastructure.
You can read the relevant provision (section 23) here.
One of the recommendations we're likely to make in this study is to alter the definitions of what is within normal maintenance and repair to include works and equipment that improves climate change resilience and to reduce the decision making thresholds for that kind of work and equipment.
In most Australian states making the changes and upgrades to common property structures and acquiring the additional equipment needed to make 'green' improvements to the building is not included within normal repair and maintenance and will be classified as upgrades. And, upgrades require higher level approvals.
In most states a a special resolution (three quarter majority) is required but in the ACT and for South Australian community schemes where the upgrades costs more than $5,000, an approval by unanimous resolution is necessary.
So, environmental upgrades are harder to approve and implement than ordinary repairs - reducing the likelihood of them happening. That includes many of the changes a strata building might need to make to adapt itself to improve its resilience to climate change weather effects.
But, one Australian exception exists in the ACT where the new (2011) strata legislation permits upgrades and additions for installation of sustainability or utility infrastructure on the common property with only an ordinary (simple majority) decision. This facilitates these kinds of upgrades. But the definition of “sustainability infrastructure” is limited covering only infrastructure and equipment that improves the environmental sustainability of the units or reduces the environmental impact of the owners corporation and the unit owners (including related utility service connections and equipment.). The laws cite examples such as - solar panels, clotheslines, rainwater tanks.
But even these reduced approval thresholds may not apply to climate change adaptation work that is not also sustainability infrastructure.
You can read the relevant provision (section 23) here.
One of the recommendations we're likely to make in this study is to alter the definitions of what is within normal maintenance and repair to include works and equipment that improves climate change resilience and to reduce the decision making thresholds for that kind of work and equipment.
Thursday, September 6, 2012
Innovative Insurance may Assist with Extreme Weather Losses
Our studies so far have revealed that insurance plays a critical role as the risk management default for extreme weather events affecting strata and community title complexes.
But the experiences of many of those complexes in far north Queensland over the last 18 months also reveals that conventional insurance products and market forces can undermine that protection. Plus, traditional insurance protections do not encourage or facilitate climate change adaptation.
So new thinking and ideas may be necessary to better deal with the climate change effects of extreme weather events for strata and community title complexes.
Complexitas is an Australian business that works with corporations and government in climate change risk management around the world to help reduce risks by focusing on risk identification, resilience and adaptivity. In a recent presentation called Can Adaptation and Insurance be Sustainable Partners to Combat X-Events, Compexitas looked at whether the impacts of extreme weather events (a class of X- Events) can be diminished by use of insurance that does not rely on the proof of loss.
This involves something called index-based insurance for highly vulnerable communities and organisations where insurance cover and payouts are not based on proving loss but, rather, the occurrence of weather disasters.
For instance, in Peru, where a defined group of weather–sensitive farming communities are now offered insurance that is not based on proving loss due to flooding rains but are given payouts at the start of an anticipated disaster season (based on climate mode information and predictability). They then have money to buy emergency seeds and to recover from any event that occurs in the anticipated extreme summer season.
This kind of insurance minimises the impacts of insurance sector failures that are usually caused by market (asset) problems, moral hazard and adverse selection and the inability to respond to and anticipate major shifts in climate and client behaviour.
It's an innovative idea that might be worth considering. You can find out more by looking at the presentation slides here and reading text of the presentation here.
But the experiences of many of those complexes in far north Queensland over the last 18 months also reveals that conventional insurance products and market forces can undermine that protection. Plus, traditional insurance protections do not encourage or facilitate climate change adaptation.
So new thinking and ideas may be necessary to better deal with the climate change effects of extreme weather events for strata and community title complexes.
Complexitas is an Australian business that works with corporations and government in climate change risk management around the world to help reduce risks by focusing on risk identification, resilience and adaptivity. In a recent presentation called Can Adaptation and Insurance be Sustainable Partners to Combat X-Events, Compexitas looked at whether the impacts of extreme weather events (a class of X- Events) can be diminished by use of insurance that does not rely on the proof of loss.
This involves something called index-based insurance for highly vulnerable communities and organisations where insurance cover and payouts are not based on proving loss but, rather, the occurrence of weather disasters.
For instance, in Peru, where a defined group of weather–sensitive farming communities are now offered insurance that is not based on proving loss due to flooding rains but are given payouts at the start of an anticipated disaster season (based on climate mode information and predictability). They then have money to buy emergency seeds and to recover from any event that occurs in the anticipated extreme summer season.
This kind of insurance minimises the impacts of insurance sector failures that are usually caused by market (asset) problems, moral hazard and adverse selection and the inability to respond to and anticipate major shifts in climate and client behaviour.
It's an innovative idea that might be worth considering. You can find out more by looking at the presentation slides here and reading text of the presentation here.
Monday, September 3, 2012
Wikipedia Information on Australian Climate Change
You've undoubtedly heard a lot about climate change by now. But, to be a fair, a lot of the information is either too technically complex to understand, too biased (either way) and/or just media hype that is not sufficiently factual.
So, it's hard to understand things well enough to make your own decisions.
Since we live in the modern information age why not use Wikipedia (The Free Encyclopedia) to find out more?
In fact, this page about the Effects of global warming on Australia is great introduction to the topic; outlining the key concepts, findings and some likely impacts in your part of the country. And, if you want to find out more it includes links to other sites and many of the leading studies and reports.
So, it's hard to understand things well enough to make your own decisions.
Since we live in the modern information age why not use Wikipedia (The Free Encyclopedia) to find out more?
In fact, this page about the Effects of global warming on Australia is great introduction to the topic; outlining the key concepts, findings and some likely impacts in your part of the country. And, if you want to find out more it includes links to other sites and many of the leading studies and reports.
Monday, August 27, 2012
Innovative Island Development for Rising Sea Levels
One of the less controversial predictions about climate change is rising sea levels which put low lying land at risk on inundation.
The Maldives is low lying (only about 5 feet above sea level) so it's particularly at risk. So, Dutch development company, Dutch Docklands, is proposing an innovative development there.
It involves a floating private island, a floating 18-hole golf course (complete with underwater, see-through tunnels between holes), a hotel and convention center, 185 villas, and a further 72 houses on four ringed islands. The islands are attached to the seabed with flexible lines, or retractable mono-piles, which allow the structures to move gently up and down.
It's a good example of the kind of innovations climate change challenges will promote and you can read more about it here.
The Maldives is low lying (only about 5 feet above sea level) so it's particularly at risk. So, Dutch development company, Dutch Docklands, is proposing an innovative development there.
It involves a floating private island, a floating 18-hole golf course (complete with underwater, see-through tunnels between holes), a hotel and convention center, 185 villas, and a further 72 houses on four ringed islands. The islands are attached to the seabed with flexible lines, or retractable mono-piles, which allow the structures to move gently up and down.
It's a good example of the kind of innovations climate change challenges will promote and you can read more about it here.
Tuesday, August 21, 2012
Enquiry about Electrical Infrastructure
When extreme weather like floods affect strata buildings the electrical supply systems are at risk.
Now the
Queensland Department of Energy &
Water Supply have produced a discussion paper addressing two of the
recommendations from the Queensland Flood Insurance Commission's (QFCI) Final Report relating to improving the resilience of high
rise buildings located in flood hazard areas specifically focusing on electricity distribution network systems inside an electricity customer’s premises.
The QFCI noted that substations located in
basements of high rise buildings in the Brisbane central business district
flooded during the 2011 floods, ceased operating and remained inoperative
for lengthy periods of time. This caused major expense and disruption for
many building owners and tenants,” said the Department of Energy &
Water Supply.
To view a
more detailed discussion on each of these recommendations click
here to view the full paper and submissions are due by 31 August 2012.
And thanks Chelsey Blount from StrataBlogger.com.au for finding this.
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