Australia has been urged to invest more in flood mitigation after a new report found funding is “grossly disproportionate” towards recovery and reconstruction programs.

The study, a joint effort by IAG and insurance industry think tank The Geneva Association, also says premium affordability remains a concern in high-risk flood regions.

It says there are many strengths in the present flood risk management system, but Australia needs to “work at the weaknesses” to prepare for future challenges, including the impact of climate change on severe weather events.

“[Flood risk management] in Australia faces the dual challenges of urbanisation and climate change impacts, such as more frequent and intensive flood-producing rainfall events and sea level rise,” the report said.

“The main core weakness in Australia’s [flood risk management] is that much of the flood risk assessment, mapping and implementation of options are largely dependent on funding availability from the federal, state and territory governments and the ability of local government to provide contributions.

“The limited availability of funding has led to a patchy approach to assessment and understanding of flood risk across Australia.

“While many jurisdictions have a strong understanding of local flood risk and a prioritised plan for flood risk reduction, the patchwork of information at a national and state level can lead to overall funding distribution not necessarily aligning to the overall highest priority flood risk areas nationally.”

The report urges Australia to step up its collaboration among flood risk managers, emergency managers and land use planners; increase funding for flood risk management; and take proactive strategies to improve flood resilience.

IAG Executive Manager Natural Perils Mark Leplastrier says a localised approach that considers the needs of each area has its benefits since floods don’t affect geographic regions uniformly.

“In order to protect homes across the country we need to work together collaboratively across all levels of government and the private sector to take a holistic view of floodplain risk management,” he said.

“This includes more consistent data and better data sharing to ensure we have the right building codes and land planning standards in place to mitigate or reduce flood risk, as well as ensuring funding is balanced and allocated towards both mitigation and recovery.

“We were pleased to contribute to the chapter and believe there’s more to learn from other countries in how they manage flood risk and other hazards.”

Click here for the report.