The Insurance Council of Australia (ICA) has called for action to overcome Privacy Act concerns that are limiting the sharing of state government data on natural disaster impacts.

State and Federal Governments are often reluctant to make data available to insurers due to “real or misplaced” concerns regarding the Privacy Act, ICA says in a submission to the Royal Commission on National Natural Disaster Arrangements.

“An important operational learning from the Black Summer Fires is there needs to be greater sharing and co-ordination of data by and from state governments,” ICA says. “This hesitation is detrimental to impacted residents.”

ICA says governments should work with the Office of the Australian Information Commission and stakeholders to remove any Privacy Act impediments to creating an effective data sharing framework.

The submission reiterates ICA’s case for greater investment in mitigation, improving building quality and standards and calls for reforms to remove disincentives caused by taxes on insurance.

ICA calls for a building inspection program, particularly for high-risk regions, which could be subsidised by state governments as part of moves to improve resilience.

“Residents are likely to service their car at least once a year, yet not do the same on their house, notwithstanding that the value of their car is significantly less than that of their home,” it says.

“In addition, cars more than a few years old are required by state laws to have an annual safety inspection before their registration can be renewed.”

SA’s independent inquiry into last summer’s bushfires has supported some of the measures promoted by ICA.

Its report released last week recommended considering removing stamp duty from home insurance to encourage a wider section of the community to take out cover.

The review also said SA government agencies should share their risk modelling data with ICA.