Brought to you by:

Flood: expert defends hydrologists’ ethics

A leading figure in the claims sector says attacks on the independence of hydrologists reporting to the Insurance Council of Australia (ICA) are “nonsense”.

LMI Group MD Allan Manning says there’s a limited number of skilled professionals working in the hydrology field in Australia, and finding a firm that had not previously done insurance work would be “like trying to find an actuary that hasn’t worked for insurers”.

He says suggestions by Ipswich Mayor Paul Pisasale that the Federal Government should establish its own independent panel of hydrologists undermined the integrity of the ICA-appointed hydrologists.

“Like any professional they’re going to do the job to the best of their ability, and they’re not going to put their professional reputations on the line,” Mr Manning told insuranceNEWS.com.au.

Mr Pisasale’s allegations of a conflict of interest followed news that two of the three firms have undertaken previous work for insurers.

Mr Manning says it makes sense for ICA and insurers to use firms they trust. “They know that any report can be taken to court and tested.”

He says the data the hydrologists have collected will probably also be used for future risk rating and flood mapping.

Reports in the Brisbane Courier Mail claimed that ICA had assured Assistant Treasurer Bill Shorten that the hydrologists it was using did not have a conflict of interest because they were “not connected” to insurance companies.