The Federal Government will launch a major review into disaster insurance in Australia, examining if there is a role for the Commonwealth to provide an insurance scheme to protect homeowners, business and government from floods, bushfires and other disasters.

 

With some insurers warning the premiums for full flood cover in some parts of Australia would be expensive, the review will also look at whether there is a case for subsidising premiums for individuals and small businesses in the highest risk areas.

 

It will also look at the ability of governments to obtain insurance, the role of the Natural Disaster Relief and Recovery Arrangements and the role of disaster mitigation measures.

 

Assistant Treasurer Bill Shorten said insurance needed to be balanced by individuals and communities at risk of extreme weather events being aware of the risks but are able to obtain suitable protection against those risks.

 

The National Disaster Insurance Review will be chaired by former Australia Prudential Regulation Authority executive member and insurance specialist John Trowbridge. Maurice Blackburn principal John Berrill and Tower Australia managing director are also on the review comittee.


The review will report back to Government by the end of 2011.