The Federal Opposition will support tougher regulation of the insurance industry if policy claims from the Queensland and Victorian floods are not resolved quickly, according to emergency services spokesman Gary Humphries.

He says he is prepared to support the mandatory code of conduct flagged by Assistant Treasurer Bill Shorten after reports that less than 10% of the $2 billion in claims from the Queensland floods have been paid so far.

While reports of policyholders living in ruined houses have provoked condemnation from politicians, insurers have cited a shortage of loss adjusters and pending hydrology reports for settlement delays.

Senator Humphries says insurers must “be pulling out all stops to ensure speedy processing of insurance claims”.

“I’ve been meeting with members of the community in several flood-ravaged electorates and one of the issues of great concern I’m hearing again and again is that delays in insurance payments, and murky language in policies, are causing stress and anxiety in the community,” he said.

“I would strongly encourage insurance companies to consider the human cost of tardy payments and put compassion ahead of profit.”

Senator Humphries’ warning comes amid threats from Premier Anna Bligh to “name and shame” insurers using interstate contractors to rebuild communities in Far North Queensland.