The Federal Government’s slow progress setting up the National Insurance Affordability Council (NIAC) is causing concern, as rising premiums leave many people without cover for natural disasters.

The council must begin work as soon as possible, to help people in high-risk areas and across the broader community, Insurance Law Service Principal Solicitor Katherine Lane says.

“In that broader context, we are worried about people who aren’t at risk of a natural disaster who can’t afford insurance,” she told insuranceNEWS.com.au. “Affordability is now becoming an incredibly pressing problem.”

In February the Government announced it was setting up the NIAC to manage the co-ordination of flood risk management. The council will make recommendations on flood and natural disaster mitigation projects and carry out other functions to reduce premiums.

“Obviously, it would better if it were set up as soon as possible,” Ms Lane said. “As a society, we don’t want a growing population of uninsured people, and I hope something happens soon.”

The Government says the Australian Reinsurance Pool Corporation will provide secretariat support to the NIAC, but it is yet to provide details about staffing or a start date.

“The Government will announce the membership of the… council in due course,” a spokesman for Minister Assisting for Financial Services David Bradbury told insuranceNEWS.com.au.