Insurance meddling risks disaster

According to News.com, the Productivity Commission’s recently released draft report opposes governments to subsidize insurance premiums. Authors of the report would rather see more investment in flood-mitigation infrastructure and the establishment of a single portal for all flood maps which include all natural hazards. The final report is expected to be submitted to the Australian federal government in September 2012.

"If insurers are prevented from setting premiums in line with underlying risks this could distort the incentives that premiums give households and businesses to manage their risks effectively," argue the writers of the draft report.