The Queensland Government has written to the Insurance Council of Australia (ICA) calling on insurers to cut premiums for householders who reduce flood risk.

Community Recovery and Resilience Minister David Crisafulli says discounts should be offered to people who raise their houses above flood levels, do not build under stilt homes and use tiles instead of carpets.

An ICA spokesman says some insurers already price mitigation into premiums, but it is a commercial decision as to the factors and data they use to calculate prices.

Information on flood risk is a critical issue, he told insuranceNEWS.com.au.

“Insurers need access to Queensland’s newly developed flood studies, to enable them to improve their assessment of individual property risks.

“ICA acknowledges the work completed by the Queensland Reconstruction Authority in this regard and believes this data should be made available to the community so property-owners can understand their own risks.”

A Suncorp spokesman says the company has been very clear in highlighting the importance of mitigation in ensuring premium affordability.

“To ensure that mitigation activity is reflected in reduced premiums this also requires the investment in up-to-date and detailed flood data,” he told insuranceNEWS.com.au.

“There are approximately 7 million residential properties in Australia so it is impractical for insurers to individually collect this information without investment and data sharing by governments.

“The availability of this information is also essential in informing residents as part of their decision making when buying or building property.”