The Greens will move to extend the Federal Government’s cyclone reinsurance pool to include all flood risks, as experts call for a broader scheme in the wake of the Queensland/NSW catastrophe.

However, the Insurance Council of Australia, which supports the cyclone pool, told insuranceNEWS.com.au that a flood pool “is not required at this time”. Most insurers would rather see long-awaited investment in disaster mitigation measures to lower the risk.

The Greens say they will move amendments to the cyclone reinsurance pool bill in the Senate to extend coverage to all floods, and require coal and gas corporations to fund it.

The Greens also want a statutory inquiry to consider the “full nationalisation” of all climate-related reinsurance for events such as bushfires.

“Thousands of homes and businesses will be uninsurable without the Greens’ plan to extend reinsurance to flood victims,” Greens Leader Adam Bandt said.

“The increased severity of climate related floods is pushing the cost of insurance out of reach of many homeowners and businesses, so nationalising cyclone reinsurance is critical but it must cover all flood victims.

“The scope of the Government’s bill is too limited. Damage from the floods in Queensland and NSW would not be covered by the Government’s legislation as they are not cyclone-related floods.”

Labor says it supports expanding the pool "in principle", although it’s waiting for the outcome of the Senate inquiry before being more definitive.

"The cost of flood insurance is going to go up and up and beyond the reach of most households, and small businesses," Shadow Assistant Minister for Financial Services Matt Thistlethwaite said.

"There's a clear justification, particularly based on what we've seen over the last couple of weeks, for the government to look to extend this scheme to cover flooding, and hopefully reduce those costs for consumers."

One insurance industry source told insuranceNEWS.com.au they believe the Government could be considering including flood – however, such a change would require a large-scale redesign of the proposed scheme and significant delay.

It is thought the more likely scenario is that the Government pushes forward with the current scheme, meeting its July 1 start date, but considers expanding it after one year.

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