Australian insurers accept the federal government will probably intervene to address high-risk properties being priced out of cover – but the industry's minister has pledged not to “cut and paste” overseas solutions.

Insurance Council of Australia CEO Andrew Hall, chairman Steve Johnston and other board members have accompanied Financial Services Minister Daniel Mulino on a trip to Europe to meet with key reinsurers and other industry figures.

Yesterday, the group was in London and gave a media briefing following meetings with Lloyd’s and Marsh, stressing that the UK’s Flood Re pool is being examined but will not be copied wholesale.

“Each country has its own risk profile, its own regulatory context,” Dr Mulino said. “I don't think it’s ever going to be the case that you can cut and paste what another country has done and just bring it across. But I would certainly say that there are aspects of Flood Re that we should look at.”

Mr Hall said Australia is “still scoping and understanding” the problem.

“More than likely, the industry in Australia accepts that there will be some sort of intervention required at some point to deal with our challenges,” he said.

“But we want to be able to learn from the system designs from overseas, so that we give it the best possible chance to actually address the problem of people not having insurance.”

Dr Mulino added a mandatory review of the cyclone reinsurance pool will be launched within weeks, and Mr Hall says ICA is looking forward to contributing.

Comments from the London briefing were not made available to insuranceNEWS.com.au but were reported in detail by The Insurer.

The delegation’s tour, which now moves to Munich and Zurich, coincides with the release of the federal government’s National Climate Risk Assessment and National Adaptation Plan, which warns of “cascading” impacts and increasing insurance challenges.

The assessment suggests “new approaches” may be needed to ensure equitable access to affordable insurance.  

An ICA spokesperson has welcomed the reports, saying they should enable more informed preparation, planning and investment.  

“Compounding climate hazards are widening Australia’s insurance protection gap, leaving more homes, businesses and communities without coverage and placing greater strain on public resources following disasters,” the spokesperson said.

“Our proposed $30.15 billion flood defence fund exemplifies the targeted flood mitigation investment needed to deliver new defences, strengthen properties and maintain insurance affordability and availability.  

“The insurance industry stands ready to continue collaborating with government to protect communities on the front line of worsening extreme weather.”