The Federal Government has given some indication of the direction being taken by its disaster insurance review, with Attorney-General Robert McClelland saying the US National Flood Insurance Program and the UK’s statement of principles on flood insurance are being examined.

Mr McClelland told the Australian Strategic Policy Institute on Friday the review will also consider whether existing arrangements to fund disaster recovery should be supplemented by a natural disaster fund, such as that operated in NZ.

He says the challenges of disaster insurance are to ensure that it is “accessible, affordable and appropriate”.

The national disaster insurance review will concentrate on insurance for individuals and businesses for damage and loss associated with floods and other natural disasters. Mr McClelland says the UK flood scheme aims to provide more affordable flood insurance for consumers through co-operation between the government and insurance sector.

“Without ruling anything in or out, now is not the time to be limiting our options, but to examine the ways in which other governments work with their citizens and insurance providers to build our community’s ability to bounce back from disasters – to be resilient,” he said.

The review report is due later this year. Mr McClelland says the Government believes it should continue to assist the states and territories through the Natural Disaster Relief and Recovery Arrangements, but “it equally believes that states and territories have a responsibility to taxpayers to put in place cost-effective insurance arrangements”.