212
The AIBV has been calculated using a number of assumptions and broad spatial data outlined below.
Refer to
Table 13.5
. Accordingly, in the absence of more fine grained insurance data at a local level, it is
not recommended to estimate the AIBV for each Council area.
Table 13.5: Estimated Average Insured Building Value in Study Area
Greater Adelaide
Western Adelaide
Median Dwelling Price ($)
$385,000
$427,798
AIBV ($)
$306,342
$340,396
(est.)
Difference (%)
79.6 %
79.6%
(est.)
Difference ($)
$78,658
$87,402
(est.)
The Average Insured Building Value for private dwellings in the Study Area is estimated to be
$340,396
or $87,402 below the median value for the Study Area. This has been derived by calculating the
difference (as a percentage) between the AIBV and the median dwelling price in the Greater Adelaide
Greater Capital City Statistical Area and applying this model and percentage to the Study Area. The
AIBV is 79.6% of the median dwelling price.
This assumes homogeneity between regions in terms of value of dwellings and non-insurance rates.
Other factors to consider are different age of data, boundary definitions, and ICA estimations.
This analysis provides insight into the extent to which the Western Adelaide region has the financial
capacity to recover from events that cause damage to property, which is a key element of regional
vulnerability assessment. It does not distinguish between the types or scale of events that may occur.
Insurance claims information for the Study Area is not available.
13.2.2. Commercial/Industrial Insurance
The Insurance Statistics Australia (ISA) collects data for industrial and commercial premises. Data
provided by ISA shows that as of December 2011, there were 17,105 policies for industrial and
commercial sites in the Western Region of Adelaide. The average value of insured sites was $778,939.
Table 13.6
summarises the commercial/industrial insurance claims for natural events in Western
Adelaide over the period 2006 to 2011 (6 years).
Table 13.6: Commercial and industrial insurance claims in Western Adelaide region 2006-2011.
Flood
Wind
Other Natural Hazards
Total Claims (2006 - 11)
2
123
175
Average Claims / Year
0.33
21
29
Total Cost in Period ($)
2,429
773,023
1,133,753
Average Claim in Period ($)
1,214
6,284
6,478
Source: Insurance Statistics Australia (2012)
