Financial Services Minister Stephen Jones says he remains unconvinced about a flood reinsurance pool but the government will consider the issue, as recommended in the flood inquiry final report.

One of the report’s 86 recommendations is that “the Australian government consider measures to improve the affordability of flood insurance for existing policyholders with high flood risk properties, including the appropriateness of a government-supported reinsurance arrangement”.

Mr Jones told the National Insurance Brokers Association Convention this morning: “We will reflect on this report, seek advice on its recommendations, and respond in due course.” 

He said the reinsurance arrangement proposal would be “looked at seriously”, but he has been unimpressed by flood pools in the US and Europe.

“I’m not convinced about adopting a model that simply shifts the cost to the taxpayers and masks the underlying risks,” he said.

“That’s not ruling it out. We will look at the proposition.”

Mr Jones also confirmed the federal government will not revisit a ban on insurance commissions, despite recent pressure from the Australian Competition and Consumer Commission and NSW government after mainstream media revelations around strata.

The Quality of Advice Review – a recommendation of the Hayne royal commission – concluded in 2022 that insurance commissions should stay with enhanced consent requirements, and the government backed that stance and has introduced legislation.

“The government made a decision on that,” Mr Jones told NIBA delegates. “We accepted the recommendations of the Quality of Advice Review and that’s been reflected in what we’ve done through the parliament. There’s been no change to our position.”

Mr Jones said that, while issues have been exposed in strata that need to be dealt with, he does not believe “broker commissions are the issue at the heart of that particular problem”.

He also said that the next tranche of Quality of Advice Review legislation would progress in “weeks, not months”.

“I hope to have exposure draft legislation out very, very soon,” he said. “This is all aimed at expanding access to quality affordable financial advice for the millions of Australians hungry for advice and information.”

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