Floods in Queensland have led to more than 2000 claims, and Insurance Council of Australia CEO Andrew Hall says many losses could have been avoided if the planned Bundaberg East levee had been built.

The update comes amid warnings of an unnamed tropical cyclone approaching north Queensland, tipped to hit the coast at category 3 strength on Friday. Areas between Port Douglas and Cooktown are on alert. 

Mr Hall today travelled to Bundaberg, where insurer staff based at a recovery centre are helping customers affected by flooding in the Burnett River catchment.

A 1.7-kilometre levee was proposed for the city’s east in 2014, but it has proved controversial, with some residents fearing it will send floodwater to north Bundaberg.

The federal and Queensland governments were to fund the project, valued at $174 million in 2023. Work was slated for early 2025, but the last update from the state, in May last year, said only that submissions were being considered and the procurement process for a managing contractor had started.

Bundaberg Regional Council has agreed to take ownership of the levee on the condition it will not have to fully fund maintenance and operation.

The Burnett River floodplain has experienced major floods in recent years, including from tropical cyclones Debbie and Marcia, and significant events in 2020 and 2021, making Bundaberg one of the most flood-exposed regional cities in Australia, ICA says.

“Investment in resilience infrastructure is the only way to break the cycle of repeated disaster and recovery,” Mr Hall said.

ICA last week declared the Queensland and Northern Territory floods significant events, escalating and prioritising the industry’s response.

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