Heavy rains and severe flooding have caused extensive damage, and prompted the evacuation of about 200,000 residents in many parts of Queensland, Australia.  The flood was triggered by a period of heavy rain in Queensland at the end of last year.

A natural disaster can have a devastating effect on an organization's people, finances, operations, or reputation. Marsh’s Risk Consulting Practice recommends that companies operating in the affected areas assess their exposures, and review their business continuity management (BCM) plans and insurance policies.

Global supply chains are also vulnerable to a supply chain disruption risk like a natural disaster. A proper global supply chain risk management program is important for businesses with long, complex and/or global supply chains, as well as companies dependent on third-party relationships.

Although it is still too early to determine an insured loss estimate, Queensland’s treasurer expects the damage costs to exceed A$1 billion, according to Marsh Australia.

Additional funding by the Commonwealth Government has been diverted to the state, which has experienced disruption to its coal and agricultural industries, two of Queensland’s largest sectors.

Locally, the debate focuses on the issue of domestic insurance coverage, with affected residents voicing concerns about restrictions and exclusions for flooding in household insurance policies.

Marsh will continue to monitor the situation and advise clients of necessary steps.  Clients in need of assistance related to this event should contact their Marsh client executive.

For real-time research and forecasts of natural catastrophes, please refer to Guy Carpenter's Cat Central bulletins.

For more information, please contact us at: contact@marsh.com.