WAGGA’S flood insurance premiums are expected to drop dramatically once the levee bank is upgraded, Australia’s peak insurance broker body has said.
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It comes as businesses across the city in flood prone areas continue to feel the pinch of higher premiums or simply do not pay for coverage at all.
National Insurance Brokers Association chief executive officer Dallas Booth was in Wagga on Tuesday to meet with local insurers about the issue.
He also walked along the banks of the Murrumbidgee where minimal protection is currently offered against flood risk.
After the 2012 floods in north Wagga resulted in evacuations of much of central Wagga, the rate of protection from the levee ban was downgraded.
Instead of being able to protect from anything up to a one in 100 year flood, the bank is now deemed to only protect from anything up to a one in 60 years flood.
Years of campaigning for better protection culminated this year in a decision to hike rates by a further $59 a year, and a federal election pledge of $10 million from the Nationals to build a new levee bank worth $21.1 million.
Mr Booth said industry trends showed that when the threat of natural disaster was reduced, premiums also followed suit.
“Where steps have been taken to mitigate the community’s exposure, the insurers respond by charging a much lower price,” he said.
“The insurance industry it is an open market, they respond.”
Peter Brown and Associates director Peter Brown said he was lobbying to see the bank upgraded as soon as possible.
Dams that fed into the Murrumbidgee River were close to full and the snow was yet to melt, he said.
“It needs to happen as soon as possible,” Peter Brown said.
“Because every year that it is not done the residents of Wagga and the businesses of Wagga are paying more in premiums because of that.”
Many businesses were running the gauntlet.
“I would say probably only 50 per cent of businesses in that area would take flood insurance,” Mr Brown said.
“It’s either too expensive for them, or they are simply taking a punt saving money.”
Last month, Wagga council said it would be unlikely to approve any new developments on north Wagga’s floodplain until a new management plan was approved.
