The drive to build more homes as a way to address housing affordability challenges could have drawbacks, Suncorp CEO Steve Johnston cautions, as he advocates for a long-term national resilience plan.

“Right now, roughly one in 10 Australian homes are high risk to extreme weather, with too many built in areas destined to flood, burn or erode, often with little to no structural measures in place to protect them,” he told shareholders at this morning’s annual general meeting. 

“And as I’ve said many times, the ‘build, build, build’ mantra to solve today’s issue of housing affordability and availability comes with the potential for corners to be cut and even more people put in harm’s way."

Mr Johnston says “great advances” have been made in the way Australia thinks about resilience and notes that governments now recognise that a dollar spent in preparation saves many dollars in mopping up. 

“Funding is finally starting to flow into mitigating the impact of Australia’s harsh climate on its citizens.” 

But there is still a lot more to be done, according to the Suncorp boss. 

“With a chronic under-investment in mitigation over the past decade or more, our builders, engineers, town planners and hydrologists have understandably directed their sought-after skills elsewhere; skills that will be increasingly in hot demand the closer we edge to the 2032 Olympic and Paralympic Games,” Mr Johnston said. 

“The consequence is that those mitigation dollars are disproportionately being invested in incremental rather than much needed transformational infrastructure projects like levee banks, water storage facilities and modern urban stormwater regress."

He says it’s time to create a “clear, long-term” national plan that “commits the resources and coordination of the Commonwealth to deliver resilience infrastructure initiatives that provide real benefit to those communities in need.” 

At the AGM today, the insurer announced Caroline Clarke will join as non-executive director with effect on November 2, subject to regulatory clearance. 

Ms Clarke is currently a non-executive board director at ASX-listed Cochlear Ltd, where she contributes to governance, strategy and risk oversight. 

“With longstanding directors Sally Herman and Simon Machell retiring from Suncorp’s board this year, Caroline’s appointment is an important part of our ongoing board renewal, ensuring we have the appropriate mix of expertise, skills and diversity to achieve Suncorp’s strategy,” chair Duncan West said.