The Insurance Council of Australia (ICA) says while more than half of the Queensland flood and Cyclone Yasi claims have been settled, it could take another 12 months to finalise the rest.

New figures show that $1.9 billion has already been paid out in cash settlements and services and that an average $13 million is being spent by insurers each day.

ICA GM Risk and Disaster Planning Karl Sullivan says more than 60% of the 128,875 claims have already been paid out. 

But although the industry is working as fast as it can, rebuilding and repair work could still take another 12 months.

“Building a house takes a long time,” Mr Sullivan told insuranceNEWS.com.au. “Some people might want to add a room here or there, which means completely redesigning their house. Insurers are working with them on that.”

Mr Sullivan says one of the biggest issues is being able to manage the perception between what the Federal Government believes is an acceptable timeframe and what is practical and achievable.

“The industry is working as fast as it can, but the last thing we want is shoddy repairs,” he said.