Efforts to improve flood information for insurance pricing are gathering pace, as more local governments contribute to the National Flood Information Database.

Among them is Tweed Shire Council in northern NSW, which has provided data to the Insurance Council of Australia (ICA) that is likely to lower insurers’ risk ratings.

State MP for Lismore Thomas George says he contacted the shire council and ICA when constituents complained of premium increases of up to 100%. Insurers were rating them high-risk due to lack of data, even though some lived on top of hills.

The Natural Disaster Insurance Review – held following the 2011 floods – found councils often had flood information, but it was not always widely available to the public or insurers.

ICA has generally had a favourable response when asking councils for data, and the step has tended to bring lower risk ratings.

Executives from IAG will meet Tweed shire councillors and staff in coming week to discuss flood risk, while subsidiary NRMA Insurance says it has been using the council’s data since February and premiums reflect the most recent information.

“We use a wide range of data to determine a premium, including council data where available, state and federal mapping, terrain and watercourse mapping and insurance information,” a spokesman told insuranceNEWS.com.au.

“The National Flood Information Database is just one source of data we use.”

In the past 18 months NRMA Insurance has sought the most up-to-date risk information from councils, whose data often allows risk to be assessed by individual property. 

“The use of council data also contributes to a shared understanding of an area’s flood risk between insurers, the councils and the community more broadly,” the spokesman said.