The Insurance Council of Australia has called on the federal government to better tap local councils’ knowledge to maximise benefits from resilience projects delivered through the Disaster Ready Fund.

It says greater weighting in the funding should be given to infrastructure, prioritising high-quality projects that will deliver significant returns on investment by directly reducing risks to communities, and the government should consider ways to “more meaningfully consult” with councils on potential projects.

“Local councils play an important role in developing and delivering risk mitigation projects needed to build the resilience of existing homes at risk of impact from worsening extreme weather,” it says in a submission to a House of Representatives inquiry into local government sustainability.

“Councils are also a key stakeholder in the process to enhance community resilience through projects delivered under the Disaster Ready Fund.”

The five-year funding program is providing $200 million a year for mitigation projects, with matching state and territory investment.

ICA also wants more support for local governments on flood mapping and to ensure they have the resourcing and skills to deliver climate adaptation initiatives.

Flood mapping is often undertaken by state government agencies, but ICA says it is critical councils also have the capacity, where necessary, to complete work.

“Better flood mapping improves insurance outcomes for communities at risk of flood and enables better assessment of flood risk to support investment in flood mitigation infrastructure,” it says.

ICA is pushing for a national standard for considering disaster and climate risk in land use planning and says the federal government should work closely with local councils to support implementation.

Local governments will also have a key role in delivering initiatives identified under an adaptation blueprint being developed at federal level and should be sufficiently resourced, it says.

The lower house committee inquiry has received more than 50 submissions and is holding public hearings.

“Local governments are facing a number of increasing challenges including the attraction and retention of a skilled workforce, changing service delivery requirements including infrastructure and development, and climate change impacts all within the context of an inflationary environment,” committee chair Luke Gosling said before the first hearing last month.