Australia to Explore European Flood Insurance Schemes Amid Rising Coverage Challenges

0

Addressing ABC Radio National Breakfast, Dr Mulino highlighted the growing accessibility issue within high-risk insurance markets, emphasizing the need to analyze overseas schemes. He noted that the Hazards Insurance Partnership is already enhancing cooperation between the government and the industry in data sharing to support risk mitigation. However, a significant number of Australians remain unable to secure adequate insurance, prompting further investigation into international solutions.

The Minister pointed out that approximately 230,000 properties and between 60,000 to 80,000 small businesses are at flood risk, leading insurers to shy away from offering flood coverage as an optional add-on. This has resulted in an increasing number of households and businesses struggling to secure complete insurance coverage.

Having recently returned from a European tour engaging with major insurers like Lloyd’s, Munich Re, Swiss Re, Marsh McLennan, Aon, and Allianz, Dr Mulino stated it is premature to comment on the efficacy of these overseas schemes. Nonetheless, he believes that the diverse strategies observed could serve as a valuable evidence base for refining Australia's approach.

Dr Mulino also noted that the US implements flood schemes in certain regions such as California and Florida, though not all have yielded positive results. This complexity underscores the importance of a careful evaluation of each scheme’s impact before adaptation.

In Australia, the Insurance Council has proposed a comprehensive 10-year, $30.15 billion mitigation fund, advocating for it to be backed by federal and state governments from Queensland, NSW, and Victoria. There is also a call to ensure the $200 million annually allocated for the Disaster Ready Fund is both sustained and adjusted for inflation.

Published:Wednesday, 22nd Oct 2025
Source: Paige Estritori

Share this news item:

Insurance News

Clear

IAG CEO Predicts Ongoing Insurance Premium Rises Amid Easing Inflation

23 Oct 2025: Paige Estritori

Australian consumers should brace for continued increases in insurance premiums, albeit at a moderated pace, according to Nick Hawkins, CEO of Insurance Australia Group (IAG). The company recently reported a significant 91% rise in net profit for the first half of the fiscal year ending December 31, 2024, reaching $778 million. This surge is largely attributed to favourable weather conditions and a reduction in claims. - read more

Allianz Australia Completes $642 Million Acquisition of RAA Insurance

23 Oct 2025: Paige Estritori

In a significant move within the Australian insurance sector, Allianz Australia has successfully acquired RAA Insurance for $642 million. This acquisition, approved by the competition regulator on June 12, 2025, marks a strategic expansion for Allianz into the South Australian market. - read more

Rising Insurance Risks Challenge Australian Businesses in Evolving Landscape

23 Oct 2025: Paige Estritori

Australian businesses are currently navigating a complex and evolving risk landscape, marked by increased exposures across various domains. A recent report from Gallagher highlights several key areas contributing to this heightened risk environment. - read more

ASIC Initiates Legal Action Against RACQ Insurance Over Misleading Premium Practices

23 Oct 2025: Paige Estritori

The Australian Securities and Investments Commission (ASIC) has commenced Federal Court proceedings against RACQ Insurance, a subsidiary of Insurance Australia Group (IAG), alleging that the insurer misled over 570,000 customers through deceptive premium comparison pricing in renewal notices issued between September 2019 and December 2024. - read more

Australian Insurance Industry Reports Record $6.1 Billion Profit Amid Rising Premiums

23 Oct 2025: Paige Estritori

Australia's insurance industry has reported an after-tax profit of $6.1 billion for the year 2024, a figure that is three times higher than the five-year average of $2 billion. This substantial increase is attributed to significant premium hikes and a relatively benign year for natural disasters. - read more

Click for more Insurance News