By: David Nixon, NSW SQID Taskforce Chair, Sydney
Date: October 11, 2025
For too long, the conversation about stormwater management has been an echo chamber. Engineers, consultants, manufacturers, and councils have been talking to each other about technical specifications and maintenance protocols. While this internal dialogue is essential, it will never be enough to solve a problem of this scale.
We’ve been operating in a bubble. To create real, lasting change, we must burst that bubble and bring in the powerful stakeholders who have a huge financial stake in the outcome but are rarely in the room: developers and the insurance industry. 🤝
The Developer: From Compliance Cost to Value Asset
For many developers, stormwater management is viewed as a “compliance cost”—a regulatory hurdle to be cleared as cheaply as possible before the asset is handed over to the council.1 The incentive is to meet the minimum standard at the lowest price, with little thought given to the decades of maintenance that will follow.
We need to change this narrative. The NSW SQID Taskforce Report helps us reframe the conversation by highlighting the developer’s direct interest in high-quality stormwater solutions:
- Risk Management: Poorly managed stormwater leads to localised flooding, erosion, and property damage within new developments.2 This isn’t just a problem for the council; it’s a direct threat to the developer’s reputation and can lead to significant liability issues.3
- Market Value: Increasingly, homebuyers are looking for quality and sustainability. A development that features well-designed, effective, and low-maintenance green infrastructure has a tangible market advantage. It becomes a selling point, not just a hidden pipe in the ground.
- Smoother Approvals: A developer who proactively engages with best-practice, whole-of-life asset design is more likely to have a smoother and faster path through the approvals process.
The Insurer: From Paying for Damage to Preventing It
The insurance industry is on the front lines of climate change, paying out billions of dollars in claims for flood and water damage every year. They understand risk better than anyone. Yet, they have been largely silent in the conversation about one of the most effective tools we have to mitigate that risk: effective stormwater management.
Their involvement could be a complete game-changer:
- Data and Influence: Insurers have unparalleled data on flood risk and the costs of water damage. This data can be used to powerfully advocate for government policy changes and higher industry standards.
- Creating Financial Incentives: Imagine if the insurance industry offered lower premiums to developments that use verifiably high-quality, low-maintenance stormwater systems. Or if council areas with certified, well-maintained asset networks received a better risk rating. This would create a powerful, market-driven financial incentive for everyone to lift their game. It moves best practice from a “nice-to-have” to a “must-have” with a clear return on investment.
Breaking the Deadlock
The stormwater industry cannot—and should not—solve these systemic problems in isolation. Developers hold the power of procurement, and insurers hold the power of financial incentive. Engaging with them changes the conversation from a niche environmental issue into what it truly is: a core financial and risk management problem for our entire economy.
The NSW SQID Taskforce Report is a powerful tool designed to start these conversations with those outside our immediate circle. We urge you to share this report with colleagues in development, planning, insurance, and government, and provide feedback on how we can best bridge these divides to create holistic solutions.
We have commenced a broad consultation process across industry, government, councils and industries. We are aiming to prepare a feedback supplement at the conclusion of the consultation period.
Review the consultation draft, Volume One, outlining recommendations, available on the Stormwater 2030 website.Submit feedback via the Taskforce Feedback Form by Monday, December 1, 2025.
