And now for a good news story…

It has been a long, hard road to improve the country’s flood knowledge, but efforts are paying off as gaps are filled in national flood databases and consumers get premium relief.

Local councils are more willing to provide data, and the information is more detailed.

Not everyone will get cheaper insurance, but IAG says on average premiums will fall by 7% if it gets council data.

Suncorp re-examined its Port Douglas policies last year based on better flood mapping, and residents’ premiums dropped by a combined $2 million.

Spokesman Josh Cooney told insuranceNEWS.com.au the company has gained a more accurate view of flood risk throughout Queensland thanks to the Insurance Council of Australia’s (ICA) National Flood Information Database.

“We have already implemented some reviews and premium updates in the past 12 months, which have resulted in a number of our customers in north and southwest Queensland enjoying significant savings on their premiums,” he said.

NRMA Insurance says it uses many data sources but local council information is generally the most detailed.

“We are seeing more councils being more willing to share flood data,” a spokesman said.

ICA GM Policy, Risk & Disaster Karl Sullivan says councils and other agencies are increasingly providing floor height data, which often means homes are no longer rated as flood-prone.

Councils are also telling ICA about levees and other mitigation works of which insurers were unaware.

Hay Shire in NSW has given information on a levee and insurers have begun adjusting prices, while the next edition of the ICA flood database will contain floor height data from Maitland, NSW. Some state governments collect data but in NSW it is done by local government, so ICA must deal with each council.

In the past councils have been reluctant to supply data, or they want a fee, but now only a “handful” withhold information, Mr Sullivan told insuranceNEWS.com.au.

Insurers do not see why they should pay for data that means they drop premiums.

Flood insurance only became widely available following the floods of summer 2011, and as it became a standard inclusion in more policies, large price rises followed for some people.

As consumers began to complain about the cost, particularly if they felt it was based on postcode and their property would never flood, pressure grew for better analysis of risk and the gaps in knowledge became more obvious.

Apart from persistence, success in building databases has come through working with other groups.

NRMA Insurance sponsors the Floodplain Management Association, and the insurer’s spokesman says the partnership has been “invaluable” in maintaining dialogue and obtaining data.

ICA is collaborating with the association – whose members include town planners, engineers and hydrologists – to visit councils to discuss obtaining data and how insurers might use it.

Association President and Director of Engineering at Moree Plains Shire Council Ian Dinham says formation last year of a flood insurance working group added momentum to the movement.

The group includes major insurers, government agencies and council representatives, and has produced a fact sheet explaining the impact of flood risk on insurance, the information insurers use to assess risk and the cost of flood damage.

Mr Dinham says improving databases is a gradual process but there has been substantial work since 2011.

“This is still very much a work in progress,” he told insuranceNEWS.com.au.

Councils are recognising that if insurers have better data they can price more accurately and will not make “worst-case” assumptions, and planners can see the value of data to help improve land use and mitigation decisions.

Toowoomba Regional Council has completed 42 separate flood studies since 2012.

“It’s an amazing achievement that is helping enormously with land use planning,” Mr Dinham said.

Mr Sullivan says councils rarely make bad planning decisions. Building occurs in the wrong place when a higher authority overturns a decision by the town planning department.

“Most councils do it right and do it safely – they err on the side of caution,” he said.

The quality of flood mapping also varies widely across the nation.

Victoria is in the process of releasing updated floor height mapping, in a more detailed format.

WA data is comprehensive in terms of ground covered but is not highly detailed. However, the state does not have the same exposure as those in the east.

ICA has a seat on the NT Flood Committee looking at areas of Katherine and Darwin that suffer flooding.

NSW data improves all the time, with more coming in from smaller councils.

SA does not have a lot of insured property exposed to flood, but the State Government is working on a collection and mapping program.

Tasmania has limited flood exposure and its data is not as high-quality as in states with more risk. But Mr Sullivan says the State Government has provided bushfire risk data that is “second to none” in its sophistication and robustness.

For insurers who have for many years struggled through bitter and complex debates and arguments with policyholders and councils after natural catastrophes, the new approach is paying off.

It’s a good news story that demonstrates the value of persistence.