Australia’s latest floods have reinforced the urgent need for action on mitigation and insurance affordability, Labor MP Susan Templeman has told federal parliament. 

About 1.3 million properties nationwide are at risk of flooding, including Hawkesbury-Nepean homes in Ms Templeman’s Macquarie electorate that have been hit hard since 2022. 

“This season we’ve been lucky so far, but that doesn’t mean we can ignore the need to act urgently on flood mitigation, flood resilience and flood insurance,” she said.

“This is not just an issue for Macquarie, it’s for every one of those 1.3 million properties at risk of flooding and already – or at risk – of being priced out of insurance.” 

Ms Templeman says the link between high risk and low socioeconomic status is strong and the Insurance Council of Australia estimates about 80% of homes at severe to extreme risk do not have flood cover. 

“When people are quoted insurance premiums for flood coverage, as they are in parts of Macquarie, of $10,000, $20,000 or $30,000 a year, it is understandably completely out of reach for homeowners,” she said.

“This is something we have to tackle head on as a government, but we can't do it without the industry.” 

Ms Templeman says the Hazards Insurance Partnership is looking at solutions and the Disaster Ready Fund has committed $1 billion for resilience. 

“In addition, I’ve worked with insurers exploring and learning about models used elsewhere. I can say no single country has nailed this,” she said.  

Ms Templeman wants a greater focus on flood defence and her region is awaiting the NSW government’s Hawkesbury-Nepean Valley Disaster Adaptation Plan to understand its priorities, but it is a broader problem and those without cover will seek government support if the worst happens. 

“Our role should be to find a pathway to help people who live in floodplains have the financial resilience to cope with the inevitability of a flood,” she said. 

ICA yesterday declared a significant event for Queensland and NT flooding. Its CEO Andrew Hall says insurers have incurred more than $15 billion in flood-associated insured losses since 2022 and Ms Templeman’s address is timely. 

“Action is required, and the industry stands ready to work alongside the federal and state governments on solutions for those people who are at the face of the protection gap in insurance.” he said on LinkedIn. 

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