Assistant Treasurer Bill Shorten and the Treasury deserve praise for striking the right balance between looking after vulnerable consumers and free market principles in the Government’s consultation paper on flood insurance reform released today:

Consultation Paper – Reforming Flood Insurance: Clearing the Waters

The public interest is clearly served by promoting a standard definition of “flood” and by ensuring insurance policy holders know exactly what they are covered for. Minister Shorten’s proposals look after the vulnerable and may forestall more interventionist and costly solutions, such as a compulsory natural disaster insurance scheme run by the Government.