Australia will examine international flood cover schemes as difficulties obtaining insurance increase at the high-risk end of the market, Financial Services Minister Daniel Mulino says.

Flood Re in the UK and schemes in Italy, France, Germany and Switzerland are among arrangements being assessed as Australia considers action.

“It is true to say, I think, that there is a growing problem of access to insurance at the riskier end of the market, and it’s very much worth us looking at these different approaches being implemented overseas,” Dr Mulino told ABC Radio National Breakfast this morning.

He says Australia is a world leader at the mitigation end of the “policy suite” and government and industry are working together on data through the Hazards Insurance Partnership, but a rising proportion of people are excluded from insurance markets.

“I think we do need to look at schemes to help communities where access to insurance is problematic,” he said.

Dr Mulino says it is estimated about 230,000 properties and 60,000-80,000 small businesses face flood threats, and insurers can better identify risky properties and are moving away from having flood as an optional cover.

“That is now less common in the market, so there are increasing numbers of households and small businesses that are finding it harder to get cover full stop,” he said.

Dr Mulino – who recently returned from a European trip with insurers to meet companies including Lloyd’s, Munich Re, Swiss Re, Marsh McLennan, Aon and Allianz – says it is too early to comment on positive aspects of overseas schemes.

“We’ve only just gotten back a couple of days ago, and I think now’s the time for us to seek more information about these schemes, to see how they’re actually impacting markets.

“I was actually impressed with how many different approaches are being adopted. I think it’s going to give us a significant evidence base on work on.”

Dr Mulino says the US has schemes in certain jurisdictions, including California and Florida, but some have negative impacts.

The Insurance Council of Australia has proposed a 10-year $30.15 billion mitigation fund, supported by federal, Queensland, NSW and Victorian governments, and says the $200 million a year Disaster Ready Fund should roll forward and be inflation-indexed.