‘Consistency is key’: ICA backs Victoria’s property flood risk reform
The Insurance Council of Australia says Victorian planning reforms will make it less likely that homes are built in places known to flood and can help improve cover affordability.
The recently gazetted reforms introduce a mandatory flood risk rating system that dictates planning and building controls, guiding where homes are built and construction standards.
ICA – which had called for the rules to be mandatory rather than discretionary – says councils need to apply the ratings consistently to ensure they deliver on their promise, and the state government should monitor how they are applied.
Updated mapping should be shared with insurers through Risk Frontiers’ National Flood Information Database, so premiums reflect the latest risk information, it adds.
ICA deputy CEO Kylie Macfarlane says the best way to reduce the cost of disasters and help keep insurance affordable long term is to stop building homes in places that flood.
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“These reforms are an important step in that direction,” she said. “Now it’s about getting it right in practice. Councils need to apply the rules consistently, insurers need the latest flood maps, and the same thinking should be applied to bushfire and other hazards.”
About 1.36 million Australian properties have severe to extreme risk of flooding, mostly in NSW, Queensland and Victoria.
ICA says with all three states reforming how planning responds to natural hazard risk, there is a clear opportunity for greater national consistency.
Planning Institute Australia says it looks forward to working with the Victorian government and stakeholders to support introduction of the changes.
“Getting the implementation right is what turns good policy into safer places to live,” Victorian VP Jane Keddie said. “The real value of planning is in preventing loss of life and avoiding the significant economic impacts of property damage and its associated impacts on Victoria’s communities.”
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