The Federal Government cyclone reinsurance pool is on track to start from July after the Senate last week passed the legislation, while rejecting an amendment to immediately extend its cover to all flooding.

Queensland Liberal National Party Senator Susan McDonald told Parliament said the pool should be introduced first for cyclones and related flooding, with so many insurers and underwriters having withdrawn from the north that the market was in “terrible disarray”.

“Before you call for the pool to be rolled out nationally, give northern Australia an opportunity to rectify the terrible imbalance that has been in place,” she said.

Senator McDonald said that since Cyclone Yasi in 2011 insurance costs have more than trebled for many people and for strata titles a premium for 25 units has gone from $25,000 to at least $100,000.

Labor says it will consider an expansion of the pool as part of a future statutory review, but won’t delay the current legislation, and voted against a Greens’ amendment to immediately include broader flood cover.

The Insurance Council of Australia says pool pricing details must now be released as soon as possible to provide clarity for insurers and policyholders.

“The pool is scheduled to commence in just three months, so it’s vitally important that insurers and their customers are able to understand how and to what extent this will impact on premiums,” CEO Andrew Hall said.