Moving flood-hit communities to higher ground should be considered only as a “last-ditch” solution, the Insurance Council of Australia (ICA) says.

Spokesman Campbell Fuller told insuranceNEWS.com.au such action may be considered “when all other options are not feasible or economically justifiable”.

He says more efficient and cost-effective solutions are available for most communities, including investment in mitigation, better land use planning and building code improvements.

Mr Fuller spoke out after Suncorp hosted a forum with US “flood retreat” expert Nicholas Pinter.

The insurer notes there are dozens of examples of US relocations, and says after the 2011 Queensland floods the township of Grantham was moved from a floodplain to higher ground through a council land-swap scheme.

Suncorp Acting EGM Industry and Public Policy Josh Cooney says all mitigation options should be considered.

“Suncorp is a vocal supporter of flood mitigation, and what we are keen to do is initiate much more rigorous discussion about what the mitigation options are,” he told insuranceNEWS.com.au. “Exploring the viability of managed relocations in towns that are more prevalent to risk is a worthwhile thing to do.”

At Suncorp’s forum, Professor Pinter outlined more than 30 cases of relocations in the US, and Mr Cooney says they feature common themes.

“They were all pretty small communities,” he said. “Clearly there is a population tipping point where the business case for retreat becomes unviable. In all the cases there was strong community leadership, and a viable and more attractive site nearby.”

Mr Cooney says in each case the relocation was prompted by a tragedy – and in some cases loss of life.

He says insurers could help relocations by offering cash settlements after losses and putting a “price signal” on risk.

“Wholesale relocation can be a cost-effective and humane solution for communities at risk of spiralling flood damage,” Professor Pinter said.

“But it needs to be part of a broad portfolio of options.”