Calls for a government-sponsored scheme to provide funding for flood victims have not been welcomed by the Insurance Council of Australia (ICA).

Media commentators and politicians have called for insurance schemes based around a reinsurance pool similar to the successful terrorism reinsurance pool.

But an ICA spokesman says the council sees no merit in such an arrangement.

“Australia already has a highly efficient and competitive general insurance market, and consumers simply need to shop around to find the product they need,” she said.

“The insurance industry has demonstrated on numerous occasions its ability to assist communities to recover from natural disasters.

“Imposing additional taxes in the form of levies on policyholders, as is proposed, is not the way to encourage consumers to take out adequate insurance.”