The Insurance Council of Australia says NSW Labor’s plan to invest $225 million in flood protection schemes in Western Sydney is a “welcome first step” towards securing adequate community resilience.

The NSW opposition’s plan includes $24 million to enact flood levees in Peachtree Creek, McGraths Hill and Pitt Town to ensure nearby flood-affected communities are guarded against future events.

The funds follow recommendations in ICA’s “Building a More Resilient Australia” report which calls for a five-year $232 million investment from the NSW and Federal governments to improve property resilience against severe weather events.

Actuarial consultancy Finity estimates the ICA’s proposed plan would save governments and communities $5.6 billion by 2050.

The report also recommends a $532 million local infrastructure fund to support resilience projects such as levees, seawalls and floodways.

ICA also calls on political stakeholders to stop taxing NSW policyholders to provide funds for emergency service providers.

“New South Wales is the highest-taxing state in the country when it comes to insurance, which drives down adequate coverage at a time and in a state where we need it most,” ICA CEO Andrew Hall said.

“In the lead-up to next March’s state election the Insurance Council and insurers are calling on all parties to commit to abolishing this retrograde impost.”