The Queensland Government has bought $53.6 billion of reinsurance cover for the state’s property assets, but has been unable to get cover for roads.

Finance Minister Rachel Nolan says cover for the state’s road network wasn’t achieved despite “an exhaustive international search”.

She says the greatest cost of the summer floods was to state and local government-owned roads, “and these are not readily insurable in the marketplace”.

The reinsurance will cover schools, hospitals, bridges and tunnels for events including natural disasters, fires and terrorism.

The Queensland Government was criticised after the summer floods for not buying reinsurance to cover heavy losses to infrastructure, with independent senator Nick Xenophon being particularly critical of the state’s reliance on Commonwealth disaster funds. 

The Federal Government only got its flood levy passed with Senator Xenophon’s vote after agreeing that disaster relief rules would be changed to force the states and territories to take reasonable steps to insure their assets.

But Ms Nolan says if the reinsurance had been in place last year the state would have received less than $50 million against damage costing $5.8 billion.

“Make no mistake; this insurance program is not a panacea for our tropical state’s natural disaster risk,” she said.

The assets are insured through the Queensland Government Insurance Fund with reinsurance through a suite of reinsurers arranged by Aon.

The cover will cost Queensland $25-$30 million a year and has a $20 million excess for single events and $50 million for natural disasters.

Ms Nolan says the Government will continue to self-insure through the Insurance Fund and will participate in the natural disaster relief and recovery arrangements which apply to all states and territories.