Insurance Council of Australia (ICA) CEO Rob Whelan has called on governments to listen more closely to the industry’s concerns.

He told the ICA annual forum in Sydney on Friday that government co-operation “is not always evident”.

As an example, he cites the Federal Government’s response to the Productivity Commission report on natural disaster funding.

As insuranceNEWS.com.au has reported, the Government declined to act on the commission’s recommendation to increase mitigation spending to $200 million per year.

This “short term view” will have implications for insurance affordability in some areas, Mr Whelan warns.

He says governments can make real changes to reduce premiums, through increased mitigation spending, better land use planning and removing insurance taxes.

Without this, “relentless pressure” on prices in high-risk areas will continue.

In a video address to the forum Minister for Revenue and Financial Services Kelly O’Dwyer also stressed the importance of mitigation.

But she implied it is the responsibility of homeowners, not governments.

“Industry must encourage homeowners to mitigate risks, and reward them with lower premiums,” she said.