Call for pool upgrade as Brisbane redraws flood maps
Mapping that shows an increased number of Brisbane properties at risk of flood underscores the case for expanding the cyclone reinsurance pool, according to a consumer group.
A review of the pool, expected this year, is a chance to “show leadership by delivering solutions that provide lasting affordability”, Australian Consumers Insurance Lobby chair Tyrone Shandiman says.
“Expanding the reinsurance pool to flood should be on the table.”
Brisbane City Council’s flood mapping update affects 17,246 properties, with 10,129 added for having some risk, 400 removed and others subject to risk changes. The revisions will be incorporated into the overlay on September 19.
Mr Shandiman says in a letter to federal Assistant Treasurer Daniel Mulino that, for many households, the changes will mean rising premiums, and while ACIL supports resilience action, the government must also explore alternatives to directly address affordability.
The lobby group notes the Insurance Council of Australia’s proposal for a flood defence fund costing $30.15 billion over 10 years.
“A reinsurance pool that includes flood cover has the potential to deliver better outcomes for both households and taxpayers, while also being far more sustainable for the federal government’s bottom line,” Mr Shandiman says.
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“When insurance is unaffordable, people are forced to go without or take out inadequate cover and that leaves taxpayers carrying the financial burden when disasters strike.”
Cyclone pool legislation passed in 2022 requires a review “as soon as practicable” after July 1 this year, then at least once every five years. Plans are yet to be announced.
Brisbane council says property owners will be contacted about the mapping update next month, but for many the flood risk can be as low as one in 2000 years and it is important insurers do not “try and cash in” by unfairly increasing premiums.
The updates involve the Breakfast Creek, Jindalee and Lota Creek catchments, and apply to creek and waterway flooding, not the Brisbane River or overland flow.
“We can’t prevent flooding in Brisbane, but being prepared can make a huge difference,” the council’s Environment, Parks and Sustainability Committee chair Tracy Davis said.
“These changes are part of our year-round work to ensure Brisbane is resilient, informed and ready for severe weather.”