Westpac will continue to cover both riverine and flash flooding but will review its pricing following the Queensland floods.

A company spokesman says pricing on the bank’s home and contents insurance is reviewed regularly and “over the next 12 months we are expecting to make some pricing changes”.

He says the changes will vary across Australia as a result of increasing natural peril costs and rising reinsurance premiums.

“In flood-prone locations these pricing changes will naturally have a greater impact,” he told insuranceNEWS.com.au.

Westpac Group Executive of Retail and Business Banking Rob Coombe was reported in the Brisbane Courier Mail last week saying the bank had charged too little for insurance covering homes damaged by the floods and cyclone.

Westpac uses data from the Insurance Council of Australia’s National Flood Information Database in its pricing calculations. The bank says that because its policies cover all types of flood it has been able to deploy assessors and engage builders quickly. All claims have now been processed.

Westpac said last month it will incur general insurance claims of around $10 million from the floods in the December quarter and additional costs of $30 million this quarter from floods in Queensland and Victoria, and Cyclone Yasi.