The first hydrology report has been released by the Insurance Council of Australia (ICA), with CEO Rob Whelan saying the remaining reports will be released by the end of the month.

ICA established a panel of three hydrologists to speed up the claims process following the Queensland floods. Many policyholders have been awaiting the reports to determine whether they were victims of storm or riverine flooding. However, the report’s findings are not binding on insurers.

The first report – into the Toowoomba floods – concludes that much of the flooding that occurred in that area was flash flooding, and even in cases where flooding had occurred from overflowing waterways it was possible that those properties had initially been inundated as a result of flash flooding. 

“Uncertainties exist as to whether properties flooded by waterflows also suffered initial inundation from overland flow flooding,” the report says. “To resolve this issue requires investigation of ‘local’ factors (such as local topography and the area of overland flow characteristics) and, preferably, numerical modelling of the storm event and stormwater drainage system in Toowoomba, which is beyond the scope of this report.”

The report’s release comes after tensions between the Federal Government and ICA over the identity of the hydrologists. While it stops short of identifying the individuals, the report does reveal they are from the firms WRM Water and Environment, Water Studies International and Worley Parsons. 

The Government had reportedly been concerned about conflicts of interest if the hydrologists had previously done work in the insurance sector.

An ICA spokesman says their identities are being kept under wraps so they are not distracted from their work.

The report’s release follows the third meeting between insurers and the Government on Friday. At the meeting an agreement was reached to develop a mandatory flood definition, which will be incorporated into the Insurance Contracts Act, as well as a one-page summary statement to help explain to consumers what they are covered for.

“ICA is consulting with its membership on the definition for ‘flood’ and, once they have done so, I will consult with consumer groups to nail down a consensus definition which the Government will move to quickly adopt,” Assistant Treasurer Bill Shorten said.

He also says the insurance industry’s willingness to embrace change is “encouraging”.

Flood mapping is also being discussed by the parties, with further talks scheduled to finalise a deal on funding the flood-mapping process.

ICA has also donated $250,000 to Queensland Legal Aid, which is providing advice to flood and cyclone victims. The suggestion that ICA support the lawyers was made at a meeting of Ipswich residents.

“The industry understands that not all policyholders will be covered for the recent floods in Queensland,” Mr Whelan said. “If policyholders disagree with the decision from their insurer they are able to access internal dispute resolution processes.