Discussions on building a flood levee in Bundaberg were described as “very positive” following a roundtable involving insurers, local councils, and state and federal government representatives.

Funding has been made available for the levee, but the project is controversial due to the potential impact of diverted water on north Bundaberg.

Bundaberg Mayor Helen Blackburn says she has been pushing for the project to include protection for communities north of the river and the state government is “definitely listening”.

“Conversations between Bundaberg Regional Council and the Crisafulli state government regarding the Bundaberg East flood levee and wider flood protection options are ongoing and very positive,” Cr Blackburn said.

The Queensland government says IAG, Suncorp and RACQ Insurance have committed to reflecting appropriate risk reduction benefits in premiums from the start of construction.

Insurance Council of Australia deputy CEO Kylie Macfarlane says the roundtable in Bundaberg continued constructive discussions on affordability, flood risk, mitigation and community resilience in regional Queensland.

ICA analysis has identified the Burnett River at Bundaberg as one of 24 east coast catchments most in need of urgent mitigation investment.

“Roundtables like this are an important opportunity for insurers, government, local representatives and technical experts to look at practical actions that can reduce flood risk in high-risk communities,” Ms Macfarlane told insuranceNEWS.com.au.

“Better flood information and stronger planning can help reduce losses, support recovery and put downward pressure on premiums.”

Timings for the first stage of construction on the levee are still unclear.

An IAG spokesperson says the insurer “will begin to pass through appropriate risk reduction benefits of the Bundaberg East levee to insurance premiums on policy renewal from the commencement of construction of the levee”.

Bundaberg council resolved in May 2024 to accept asset ownership, operation and maintenance responsibilities for the levee, on the condition asset transfer costs are funded by the state.