A flood study commissioned by the NSW Government providing the most up–to-date information on river flooding will help insurers fine-tune their pricing and may lead to lower premiums, the Insurance Council of Australia (ICA) says.

It has commended the Hawkesbury-Nepean Valley Regional Flood Study initiative, describing it as a vital step towards improving community understanding of the flood risks faced in western Sydney.

There have been about 130 moderate to major floods in the valley since records began in the 1790s. Since the last region-wide flood studies were produced more than 20 years ago, flood modelling and science have changed considerably.

The study will share insights into flood exposure for the owners of more than 21,000 land parcels in the region, and awareness of flood risk will increase with the sharing of resources with the community.

“Insurers will be able to fine-tune their premiums for many property owners,” says ICA Head of Risk and Operations, Karl Sullivan. “Where flood exposure is reassessed as lower than previous data indicated, lower premiums may follow.”

The study will empower local governments to make better informed development and land-use planning decisions, ICA says.

“Armed with this information, thousands of property owners can consider how best to protect their assets in the form of property improvements and the purchase of insurance that includes flood cover,” Mr Sullivan said.