Properties initially assessed as damaged by the Queensland floods have been reduced by up to 70 percent, according to the latest estimates released on Monday by the Insurance Council of Australia.

The Insurance Council downgraded its first estimate of more that 15,000 homes wrecked by the disaster to a more conservative figure of 5,900 properties but its earlier assessment of up to $1.51 billion losses remain untouched, with the ongoing damage-survey estimates of the insurance industry wrapping up more than 70 percent of its task.

The latest damage assessment also included some 150 properties destroyed by cyclone Yasi that hit the state last week, with another 650 homes in the area labelled as sustaining considerable extent of damages.

Insurance Council chief executive Rob Whelan said on Monday that the general insurance industry is doing its best to complete its assessment works at the soonest possible time as he added that repair works in many areas have already commenced.

Whelan said that insurance undertakings appear to be proceeding smoothly at this time yet the monitoring functions of the Insurance Taskforce will remain as he gave assurance that the Insurance Council will closely coordinate "with the Queensland Government to work as quickly as possible to complete assessments of insured property that has been damaged."

Meanwhile, QBE Insurance chief executive Frank O'Halloran has indicated last week that home insurance premiums would need to be adjusted upwardly to enable the industry to recover the huge payouts it released as directly caused by the floods and Yasi.

O'Halloran added that rates may also be increased as global re-insurers firmed up their pressures on the industry to bear most of the risks attached with the country's natural disasters, with the QBE Insurance head effectively flagging the likelihood of "a move in property rates in Australia."

He added that despite the new damages left behind by Yasi, which could mean to some $100 million worth of claims for the general insurance industry, the insurance sector effectively "dodged a bullet along with the rest of Queensland, which is a very pleasing thing to happen."