NDRRA: Independent Assessment of State Insurance Arrangements

The Commonwealth’s amended Natural Disaster Relief and Recovery Arrangements (NDRRA) requires states to conduct a regular assessment of the adequacy and appropriateness of insurance arrangements for NDRRA-eligible assets.

The assessment is to be done at least every three years by an independent expert with the first assessment due on 30 September 2011. 

NSW Treasury has engaged Finity Consulting, an actuarial and consulting firm specialising in the general insurance industry, to do the independent assessment.

The first assessment found the following: 

• The State’s self-insurance scheme, the Treasury Managed Fund, provides sustainable protection and funding for covered assets.
• Local government assets with the exception of roads, bridges and underground pipes are all insured in the commercial market.  There are limitations on flood insurance.  However the cover is generally adequate or complete.
• Regarding Public Trading Enterprises and State Owned Corporations, Finity found no major uninsured asset other than the pipes and underground assets of water and sewerage entities.

All NSW Government information relating to the Independent Assessment of State Insurance Assessment will be published via this web page.

Read the NDRRA: Independent Assessment of State Insurance Arrangements