The insurance industry has welcomed the inquiry and pointed to the incredible statistics emerging from that year in which a quarter of all Australians lodged an insurance claim and claims across all categories reached $36 billion.

It has also urged the inquiry to examine the impact of state insurance taxes on customers’ capacity to appropriately insure, as well as how the impact of past decisions on land use planning and disaster mitigation impact community risk and insurability.

The inquiry would take a whole‑of‑economy view of the ongoing challenges faced during intense and frequent flood events and would investigate the preparedness of insurers to respond to the frequency of these events.

It would also consider supply chain issues, skills, and labour shortages, claims handling, and communication with policy holders before, during and after these devastating events.

Assistant treasurer Stephen Jones said natural disasters continued to have a massive impact on the lives of Australians, especially those in rural and regional communities.

“The 2022 floods in South‑East Queensland and NSW are the costliest natural disaster for insurance costs in Australian history,” he said.

As of June 2023, the ICA estimates the February‑March 2022 floods in South‑East Queensland and NSW have caused $5.87 billion in insured damages, but continued flooding over the rest of the year pushed that figure to $7.17 billion.

“This is why the Federal Government has formalised its commitment of up to $1 billion over five years from 2023‑24 (up to $200 million per year) to invest in measures that better protect homes and communities from extreme weather through the flagship Disaster Ready Fund,” Leigh said.