Businesses should prepare for La Niña

Businesses should prepare for La Niña | Insurance Business

Businesses should prepare for La NiƱa
Following recent reports of possible La Niña in the coming months, MGA Insurance Brokers is urging Aussie businesses to prepare for the flooding that could come from the wetter weather and ensure their assets are protected from financial implications.

According to the Bureau of Meteorology (BOM), there is a high chance of above-average rainfalls in Australia for the season, as indicated by current Indian Ocean Dipole (IOD) index values showing a pattern toward a negative IOD.

The IOD is determined by winds and sea surface temperatures; and a negative IOD predicts arrival of La Niña, explained MGA.

BOM said there is an 80 per cent chance of higher than median rainfall in New South Wales between July and September, with South Australia and parts of Queensland and Western Australia also likely to experience above-average rainfalls.

Andrew King, University of Melbourne climate scientist, told News Corp Australia the weather pattern could have mixed outcomes:

"In general, a lot of Australia has been in drought recently and if they get more rainfall that's really beneficial for farmers and also good for filling up reservoirs. But you never have everything positive. And if there are heavy rainfall events, there could also be flooding."

According to the MGA report, BOM expects that the negative IOD will not be as severe as the one that occurred in 2010. Nevertheless, MGA urges organisations to use the forewarning to prepare properly for possible flooding that can have a detrimental impact on businesses.

By acquiring the right insurance policy, businesses can protect themselves from the financial fallout of insurable damage to assets. This way, MGA said: “You can rest easy knowing that your business can bounce back and continue to operate, whatever the weather.” 

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