Disasters proving too costly: report The increasing number of natural disasters in Australia is rendering some communities uninsurable. THE increasing frequency of natural disasters is rendering some communities uninsurable, according to a new report commissioned by the Australian Local Government Association. The 2013-14 State of the Regions Report, which assesses the health of the national economy, says major disasters can cost between 0.4 and 0.7 per cent of gross domestic product (GDP), the total monetary value of all goods and services produced in Australia. Economist and co-author Dr Peter Brain said the report estimated that the 2009 Victorian Black Saturday bushfires cost 0.4 per cent of GDP and the Queensland floods of early 2012 about 0.7 per cent of GDP in recovery expenses. "We're talking about figures of up to $10 billion," Dr Brain said. It can take communities years to recover from a major disaster and the overwhelming likelihood is that these disasters are going to occur more frequently. This means that some places may become uninsurable. The report stressed the need for the federal government to assist with helping communities to be as resilient as possible from the threats of floods, fires and cyclones. It called for increased federal funding for natural disaster mitigation to ensure that local communities were better prepared in the face of more severe and frequent weather events.