Sharing flood data between councils and insurers can help address the higher premiums facing consumers in the north, Floodplain Management Australia (FMA) says.

Most councils have databases of flood studies and mapping information that can help insurers improve risk analysis at specific locations, the FMA says in a submission to the Australian Competition and Consumer Commission’s northern Australia insurance inquiry.

“FMA holds the view that when insurers have access to high-quality flood data, premiums can be set to more accurately reflect the real risk,” it says.

“Importantly, there is evidence that premiums for many properties with risk of flood often go down after local governments provide insurers with more up-to-date or sophisticated data. 

“FMA encourages its members to enter into dialogue with insurers and share their flood risk information to the greatest extent possible and appropriate.”