The general insurance industry in Australia has expressed its determination to set a standard definition for a flood to be able to offer improved flood cover through a ten point plan for tackling disasters.

“There is no simple, single solution to the flood insurance debate. It requires the development of a national policy approach to better deal with a number of challenges presented by floods in those communities at-risk,” said Rob Whelan, CEO of the Insurance Council of Australia.

“I want to reiterate the position of the general insurance industry - that a flood levy may have unintended consequences - creating a moral hazard and encouraging fewer people to take responsibility for their own risks through purchasing appropriate insurance products,” said Whelan.

The 10 key objectives of the plan are:
1. Standard definition for flood
2. Improved disclosure
3. Provision of adequate flood data
4. Removal of insurance taxes
5. Improved land-use planning
6. Improve building standards
7. Improve community infrastructure
8. Education and financial literacy campaign
9. Measure effectiveness of disaster relief payments
10. Better advice to consumers

It is the view of the ICA that while disaster support for the re-building of infrastructure is needed, it should only be conducted hand in hand with reforms to encourage greater take-up of private insurance.

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