Northwest Insurance MD David Coe has weighed in on the challenge facing Bundaberg and surrounding areas after the Burnett River catchment flooded last week.

Mr Coe agrees with the Insurance Council of Australia’s push for increased spending on mitigation projects such as the proposed Bundaberg East levee.

“We’re long overdue for it,” he said of the flood defence.

“I think the problem we face is, what is the best way to do this? And I think you’ll find that most cities that have this issue are going to be faced with the same question … what is the most cost-effective way to do this versus what is the best way to do this?”

The Queensland and federal governments agreed to jointly fund the $174.7 million levee in June 2023.

However, construction has yet to start because of concerns over the potential impact of diverted water on north Bundaberg.

“The levee would be good … But if the levee is put in and it does redirect the water, where’s that water redirected to, and what more damage will it do to somewhere else, for instance? We don’t know yet,” Mr Coe told insuranceNEWS.com.au.

Mr Coe, who was born and raised in Bundaberg, says premiums rose sharply after the 2013 floods – the worst in the Queensland regional city’s history.

He recalls premiums increased by as much as 60% afterwards.

“We really haven’t had any devastating floods since 2013 ... we’ve had a couple of smaller ones but nothing of that magnitude of 2013.

“The 2013 floods were very costly. A lot of people were not insured.”

Northwest Insurance, which has offices in Bundaberg and Rockhampton, has been supporting clients affected by last week’s floods.

“It’s what I would call the usual suspects. They’re in that low-lying area where you know basically any small flood is going to affect them one way or another,” Mr Coe said.

He says mitigation “has to be done. Some sort of flood protection for the city needs to be done … to keep premiums to a level that is affordable.”

From the latest Insurance News magazine: How "zero progress" on insurance affordability is spurring some levels of government to radical action