Suncorp has hailed a decision by the central Queensland town of Roma to proceed with stage two of its flood mitigation project.

The insurer says the development, which has been approved by the Queensland Government, will protect more properties in the town, which was inundated by three major floods from 2010-12.

Stage two is expected to cost at least $8 million, with funding partly from the state’s regional infrastructure program for local government projects.

“In the end, community safety was at the centre of the final [planning] decision, with paramount importance placed on the protection of lives,” Infrastructure, Local Government and Planning Minister Jackie Trad said.

“This is a lifesaving measure and will mean the flood levee will protect about 30 additional properties from above-floor flooding.”

The completion of stage one in early 2015, which involved building a 5.2km levee, reduced above-floor flood risk for about 490 properties.

Suncorp reduced premiums in Roma by as much as 90% when stage one was completed.

“We know flood mitigation is one of the smartest investments governments can make, because flood remains one of the greatest natural perils in Queensland,” Suncorp Public Policy Manager Joshua Cooney said.

“If done properly, flood mitigation can protect vulnerable communities, safeguard local economies from disaster impacts and achieve insurance premium savings for residents.

“Stage two is a smaller project by comparison, with 30 properties to benefit. Regardless,

Suncorp’s commitment to rewarding effective mitigation remains.”