Suncorp is reviewing risk pricing in Emerald and will offer cover there once again after the State Government pledged $5 million for flood mitigation work.

The company stopped writing new cover in the central Queensland town last February, having spent $55 million on flood payouts in the previous three years.

The government mitigation work will benefit the community, according to Suncorp Personal Insurance EGM Natasha Fenech.

“We know that for every dollar of this commitment, taxpayers and ratepayers will save between $2 and $10 in flood repair and recovery costs.”

Suncorp says company executives will visit Emerald to find out about the mitigation work and establish risk costs for the town.

The company is awaiting a commitment from the State Government on similar measures in Roma, 400km south of Emerald, where it also stopped providing cover last February.

Insurance Council of Australia President and Suncorp CEO Personal Insurance Mark Milliner told ABC’s Inside Business program yesterday the company has paid out about $150 million in flood claims in Roma and Emerald over two years for a $4 million premium.

“If we had spent $10 million on a levee four or five years ago, the Government would have saved hundreds of millions of dollars in terms of not rebuilding roads and schools, and obviously insurance companies wouldn’t have spent as much on rebuilding houses.

“Premiums would also have been lower.”