7
An economic framework would allow the present value of adaptive response options to be calculated,
taking into account value of the assets, estimated lifespan and replacement costs, future impacts from
climate change upon the assets, costs of damage, and use of appropriate discount rates.
The following data gaps were identified in relation to private sector assets:
x
Economic data, including employment, valuation of private assets, insurance details.
x
Initiatives being adopted or intended to be addressed in relation to addressing risks associated with
climate change.
x
Documented business impacts associated with climate change.
Recommendations
x
Examine risks and opportunities for large and small business in relation to climate change impacts
and the ability for business to manage these. This should include consideration of methods for
carrying out cost effective climate change impact and mitigation assessment.
x
Examine the broad risks to the region and State should any of the major businesses or infrastructure
assets be adversely affected or unable to operate for short or extended periods as a result of climate
change impacts.
x
Gather more exact information about the value of key economic infrastructure and community assets
and examine more closely the future costs that may be directly associated with climate change
hazards.
Insurance
The Study Area has a relatively higher propensity towards non-insurance and has a marginally lower rate
of building insurance than Greater Adelaide, which increases the community’s relative vulnerability to the
potential effects of climate change.
The average insured residential building value (private buildings) for the Study Area is estimated at
$340,396, around $87,402 or 79% below the average median dwelling price for the Study Area.
Between 2006 and 2011, the Study Area’s commercial and industrial sector made on average 21 claims
per year for wind damage ($6,284 / claim) and 29 claims per year for other natural events ($6,478 /
claim). The total cost of wind, natural hazards and floods over the period was $1.58 million.
Knowledge gaps in relation to insurance assessment include:
x
Data limitations in relation to residential insurance cover and claims at a sufficiently local level to
accurately analyse the region’s private residential insurance profile.
x
Industrial and commercial insurance data for all enterprises, particularly large businesses that may
insure their assets through interstate offices.
x
Government insurance data for government assets was not available for this study.
