Suncorp is still refusing to write new business in the flood-affected Queensland town of Emerald despite joining a council tour of flood mitigation work in the town.

The insurer withdrew coverage from the town last month after $4 million paid in premiums in the past two years resulted in $150 million in flood claims.

Emerald residents are reporting insurance renewals with 600% premium increases.

Central Highlands Regional Council Mayor Peter Maguire met representatives of Suncorp, CGU and NRMA Insurance last Monday to show them completed and in-progress mitigation work.

He says one example is new houses west of the Nogoa River, which must be built 60cm above the 2010 flood level.

“What had been concerning me was that people were making statements that we weren’t doing anything,” Mr Maguire told insuranceNEWS.com.au.

He says many mitigation measures are the responsibility of state government corporations or departments.

Increasing water flow under the Nogoa River rail bridge is the responsibility of Queensland Rail and would cost between $300,000 and $500,000, while installing bigger pipes to increase flow in the drain under the Gregory Highway needs State Government funding of $1 million. 

The council has other mitigation works planned, but cannot complete some of them until the rail bridge and highway are finished.

Mr Maguire estimates that although Emerald cannot be made completely flood-proof, all the planned mitigation works could be completed for $4 million.

“It’s a lot when the State Government is broke,” he says. But compared to the cost of floods, “it is not a lot of money”.

Suncorp’s representatives at the Emerald meeting included EGM Customer Product and Pricing Natasha Fenech and EM Business Pricing Michael Gassman.

Suncorp Corporate Affairs Manager, Strategic Projects Marcus Taylor told insuranceNEWS.com.au there is “no such thing as zero risk with flood levels”.

“Suncorp has made it very clear that it wants to see a clear mitigation plan that is both funded and attached to a clear timeline,” he said.

“We have committed to writing new business as soon as this is received.”

CGU’s representatives at the meeting were National Personal Lines Manager Rhys Williams, State Manager Queensland, Broker and Agent Division, Damien Gallagher and Senior Corporate Affairs Adviser Sean Sampson.

“State MP Vaughan Johnson was out in the media the week before saying no one was offering flood cover [in Emerald],” Mr Sampson told insuranceNEWS.com.au.

“It was great to talk to council and confirm we were still offering flood cover in the town.”

He says CGU takes into account that some parts of Emerald are not in known flood areas and some properties are set high on stumps.

Premiums on flood-risk properties are “priced appropriately”, Mr Sampson says.