Insurance premiums to see some reductions due to flood maps

The Queensland Government has said that their improved flood mapping they will provide to insurance companies should provide an insurance premium relief for many property owners.

As part of 'Get Ready' week, which saw the Queensland Government and the Insurance Council of Australia (ICA) signing a Memorandum of Understanding (MOU) to tackle common insurance issues, Natural Resources and Mines Minister Andrew Cripps said that Queensland has sufferent many difficulties recently.

“Queensland has been challenged in recent years by a full range of natural disasters, including flooding, storms and cyclones, with greater frequency and intensity than neighbouring States," said Cripps.

“Insurance premiums have risen significantly in Queensland and have been fuelled by uncertainty about hazard areas and the ability of insured premises to withstand severe weather events.”

Downwards pressure on premiums has become a focus, particularly having seen the aftermath of Cyclone Larry and Yasi and a number of flood events.

“Insurance premiums hit hard on the back pocket of Queenslanders, particularly in the north, and I am pleased to see this MOU signed," he said.

“Under our agreement with the ICA, the Department of Natural Resources and Mines (DNRM) will give insurance companies free access to all existing and future Queensland Government flood mapping and elevation data."

This will mean that premiums are calculated on the latest and most accurate data.

ICA's CEO, Rob Whelan, said that sharing the data is crucial for helping the insurance industry to deliver accurate and affordable premiums to policyholders.

“DNRM has given the insurance industry access to official flood data and mapping for the first time, as well as access to the Queensland Globe, which lets insurers analyse flood lines from the 2011 and 2013 flood events," Whelan explained.

"Insurers will be able to use the latest data when calculating premiums for households and businesses in flood-prone regions," he said.

“This is likely to reduce the upward pressure on premiums for many households."

This will also ensure that the two bodies can work together to find out where there needs to be further improved hazard mapping.