Queensland local governments say insurers are not recognising the impact of levees in reducing flood risk in their communities as premiums continue to soar.

Mayors from the Murweh and Balonne shires in the state’s southwest say they want answers from insurers after receiving complaints from residents over the increases, which have included a premium jump from $3500 to $13,000 a year. 

Murweh Mayor Shaun “Zoro” Radnedge says he has called insurance companies to ask how the premiums were calculated and has been told they didn’t realise Charleville had flood-proofing levees. 

“We have a levee bank in Augathella and in Charleville but we have seen these huge rises in these places,” he said. 

“Council and government have put a lot of money into maintaining that mitigation and we’re asking where does the mapping come from that insurance companies are using to make the assessments on these insurance policies.” 

Balonne Shire Mayor Samantha O’Toole says towns in her region, including St George, Thallon, Dirranbandi, Bollon and Mungindi, are protected by levees, but insurers are still raising premiums even though none have been flooded. 

Cr O’Toole says residents in the shire have been hit with 100% rises year-on-year. 

“We have a housing shortage and these premiums could make it worse, as to get a mortgage you need insurance cover,” she said. 

“If fewer people can afford insurance then we are going to have fewer homes available, which will just exacerbate the housing shortage.” 

The Insurance Council of Australia (ICA) says it has noted the concerns raised by the councils and is making enquiries with its members on the issue. 

ICA says it is advocating for solutions including enhanced flood mapping to improve insurance outcomes for communities at risk of flood and is collaborating with the Australian Climate Service to determine how industry and government data can be combined to strengthen understanding of the risks and the value of resilience infrastructure. 

“When it comes to premium increases, wherever you live in Australia, whether you’re directly exposed to extreme weather impacts or not, premiums are rising because of the escalating costs of natural disasters, the growing value of our assets making them more costly to replace, inflation driving up building and vehicle repair costs, and the increasing cost of capital for insurers,” a spokeswoman told insuranceNEWS.com.au.