Insurance Council of Australia (ICA) President Rob Scott has hit back at critics of the industry’s actions over the flood insurance issue, advising them to address their own failings over flood.

A week after ICA CEO Rob Whelan fronted a hostile meeting of Ipswich residents without any member – an absence dubbed “cowardice” by Prime Minister Julia Gillard – Mr Scott used an article in The Australian pointing out that such comments “reinforce the rage” aimed at insurers over rejected policy claims from the Queensland floods and Cyclone Yasi.

He says the industry is on track to honour 87% of the claims received and is pumping $15 million a day into shattered Queensland communities, “far exceeding the money being delivered to the community by the state and federal governments”.

“Naturally, residents who did not have flood insurance attacked insurers initially and people in government at all levels were quick to reinforce that rage,” he wrote.

“However… residents are taking a longer-term view that includes a desire to ensure they are never hit by floods again.”

Mr Scott said poor government practices at all levels had exacerbated the impact of the floods. Local governments had allowed homes to be built on flood plains, while the Queensland Government failed to release water from dams in time, leading to massive floods, and “interfered with natural waterways that set obstacles to water flow, causing artificial dams that banked up floodwaters into nearby private property”.

“These issues require action,” Mr Scott said. “And all parties, including insurance companies, need to discuss and solve them.”

Noting that the proposed standard flood definition launched at the Ipswich meeting is “just words”, Mr Scott added: “It does not meet the need for a national overhaul of land use planning and [the need for] mitigation works to prevent floods from devastating Australian communities again.”