The issue of flood insurance – or at least the lack of it – still hangs over the insurance industry as a problem that endangers its newfound community credibility. Now the Insurance Council of Australia (ICA) board has put community concerns about flood cover high on its agenda for the next year.

The agenda also includes the industry’s image and reputation, the new code of practice, the collection of insurance statistics, promoting financial literacy and further research into reducing underinsurance.

ICA President Mike Wilkins said consumers can expect continued strong competition and comprehensive protection provided by the regulatory regime.

He said there had been considerable discussion on flood insurance at a recent board meeting. “As an industry we do need to do something about it, and that’s what the board is committed to.”

There are sceptics. Australian Consumers' Association CEO Peter Kell told last week’s ICA Canberra conference that he is not convinced the industry is adequately equipped to deal with the next incident that raises the issue of flood cover. But he praised the establishment of the Insurance Disaster Response Organisation as a good initiative and said the industry is working in the right direction.

“We all know that flood mapping information, flood mitigation and other parts of the picture in this area are not ideal, but the industry needs to get its act together,” Mr Kell said.

“Ultimately this issue is about cover that is clearly worded and available to a wider range of households.”