A Launceston levee project prevented $216 million of flood losses last year, reinforcing the insurance industry’s push for greater spending on mitigation projects.

Insurance Council of Australia spokesman Campbell Fuller says the result “is a clear signpost to governments around the need to prioritise investments in mitigation, along with other measures such as better town planning and building resilience in vulnerable areas”.

Spending on measures such as levees ultimately saves governments and taxpayers substantial amounts, he told insuranceNEWS.com.au.

The Bushfire and Natural Hazards Co-operative Research Centre says a cost-benefit analysis by Geoscience Australia shows losses avoided thanks to the levees were about four times the level of spending on the project.

“Actual benefits of the mitigation works to the community are greater than could be assessed economically and would further support the investment in mitigation,” it says.

The study examined what would have happened assuming inadequate pre-existing levees were still in place when Launceston was hit last June by its largest flood since 1969.

Work on the enhanced levee system began in 2010, with the project costing $58 million, including land acquisition.

The total cost of the flooding, including to state and local government infrastructure, was estimated at just $2 million due to the upgraded protection.

“Without doubt, the June floods would have had a much greater impact in terms of overall damage to homes and infrastructure, as well as some level of inundation across the city, had the levees not been in place and worked so effectively,” City of Launceston Infrastructure Services Director Shane Eberhardt said.

The research centre’s report follows an independent review of the state’s flood catastrophes tabled with the Tasmanian Government earlier this year. This proposed further examinations of mitigation measures and flood mapping.

Mr Fuller says the Tasmanian Government and Insurance Council are in talks about a new flood study project, while stakeholders in the state are considering a range of measures to help communities facing flood and bushfire risks.