Insurers are working with Financial Services & Regulation Minister Joe Hockey to set up a taskforce to develop solutions to the problems surrounding flood insurance.

The formation of the taskforce comes as the ALP Federal Opposition steps up its influence on this issue. The ALP has called for money to be spent on accurate flood mapping, a parliamentary inquiry into flood insurance, and the setting up of an “insurance ombudsman”.

While ICA Executive Director Alan Mason is encouraged by the new show of interest, he said both sides of politics need to show greater commitment to the funding of flood mitigation works throughout Australia. The current Federal Regional Flood Mitigation Program provides only $20 million over three years for the whole of regional Australia, on a funding basis that requires the same contribution from state governments and local councils.

“Many councils don’t have the resources required to match that funding,” Mr Mason said. But he said a parliamentary inquiry is not necessary because the various arguments surrounding flood insurance are well known.