QBE CEO Frank O’Halloran admits there are problems with flood insurance, but says governments should have heeded insurance industry warnings over building in flood-prone areas.

Speaking at the QBE investors’ briefing last week, he said consumer criticisms over their treatment by insurers during the floods were “fair enough”.

“Because companies have different wordings out there, there’s some confusion,” he said.

But he saved his harshest words for state and local governments which have ignored insurance industry warnings about allowing building and development in areas with known flood risks.

He told the briefing that prior to the January floods, the industry had “consistently requested” the Queensland Government to develop proper flood mapping.

He says Australia’s governments should look to the UK, where the British Government has invested heavily in the development of sophisticated flood mapping.

Issues thrown up by the Queensland floods won’t be resolved unless proper flood mapping is produced and governments impose stricter controls about rebuilding of homes and businesses.

“We didn’t, as an industry, authorise those properties to be built in flood-prone areas,” Mr O’Halloran said. “It’s a government issue as well as an industry issue.

“You can’t ask an industry that’s in the business of underwriting risk to take on risk they can’t underwrite.”