The Insurance Affordability and Natural Hazard Risk Reduction Taskforce will be established by the Department of the Prime Minister and Cabinet as concern over rising home premiums intensifies.

The Insurance Council of Australia says it will engage with the federal government to work through options for a “partnership arrangement”, which could include a flood pool or direct subsidies.

Insurers and the government have previously dismissed such government intervention in favour of increased spending on mitigation and better land use planning.

But they now appear to accept that, while reducing the risk is still the long-term answer, a short-term intervention is also required.

See Analysis.