Negotiations over a standard flood definition are continuing between the Insurance Council of Australia (ICA), its members and the Federal Government.

Member companies had until March 11 to submit their preferred definition to ICA, and a spokesman says discussions over the wording with members are “ongoing”.

“Work on the definition is progressing well,” she told insuranceNEWS.com.au. “Discussion between ICA and member companies with the Federal Government is still under way. The next step is really to reach agreement in preparation for a formal announcement in the near future.”

A spokesman for Assistant Treasurer Bill Shorten also says the talks with ICA and other stakeholders about a standard definition for flood are “progressing well”.

“We would expect to be consulting publicly on the standard definition in the not-too-distant future.”

An ICA discussion paper dated February 10 suggests two ways to address concerns about flood – by defining all sources of water causing damage, or defining flood with certain restrictions.

With 86% of ICA members opting for a flood definition approach, the most popular definition of flood is: “The covering of normally dry land by water that has escaped or been released from a lake, watercourse, reservoir, canal, dam or stormwater drain.”