The Insurance Council of Australia (ICA) is examining the UK’s “gentlemen’s agreement” on flood – a contract between the British Government and insurers on the management of flood – in a bid to explore all its options when it comes to flood insurance.

Association of British Insurers spokesman on climate change Jane Milne flew to Sydney for a seminar to present information on flood management in the UK, including the “gentlemen’s agreement”.

Currently a typical premium for cover in the UK is about £330 ($812) and a typical flood claim is from £15,000-£30,000 ($36,893-$73,787).

ICA Executive Manager of Policy Development and Research Carolyn Conner says while the council hasn’t decided on the model it will use, it’s considering the scheme in some detail.

Last year ICA looked extensively into the US Federal Emergency Management Agency’s National Flood Insurance Program. Former Executive Director Alan Mason said at the time that while there were good points to consider in the scheme, financially it was less than desirable.