A number of insurance providers have announced plans to slash flood insurance premiums once the relevant risk data has been released.

This news comes after the Chamber of Commerce and Industry Queensland (CCIQ) released a report which revealed business insurance premiums were the third largest constraint on Queensland enterprises.

“Rising insurance premiums are affecting all Queensland businesses,” CCIQ Advocacy General Manager Nick Behrens said in a March 17 media release.

“The price hikes are a combination of a number of factors which have jacked up premiums and created of a perfect storm in some regions, especially in North and Far North Queensland.”

However, it’s not just north Queensland that is affected by rising business insurance costs. Mr Behrens explained that premiums across the country are “soaring” due to recent natural disasters leaving insurers struggling to protect profits.

“Anecdotally, there are also concerns that some companies are deliberately pricing themselves out of the northern Queensland market to avoid further exposure to the risk of natural disaster-prone regions,” Mr Behrens revealed.

Fortunately, this move by insurance sector leaders Allianz, NRMA and Suncorp means business could soon benefit from premiums falling by as much as 30 per cent in some areas, according to industry publication Insurance Business.

“Following the completion of any flood mitigation, insurers rely on the provision of updated flood mapping and data in order to understand how the mitigation works will impact on the flood risk of relevant properties,” a spokesperson from Allianz told Insurance Business on March 18.

“Once this data has been received, Allianz can commence the process of analysis and incorporate the data into our flood modelling and pricing. Once this has been done, lower flood risks associated with the mitigation will be reflected as appropriate in Allianz’s premiums.”

If your organisation is at risk of flooding or other unexpected weather events, you may wish to consider switching provider to make the most of this new policy. For more information, contact the MGA Insurance Broker team today.