The insurance industry has developed and licensed the National Flood Information Database (NFID) to assist insurers in assessing flood risk for individual properties, in collaboration with state and territory governments.
NFID is an address database containing 13.7 million property addresses, integrated with government flood mapping data to indicate known flood risk levels. Due to commercial licensing agreements between governments and flood risk experts responsible for compiling the flood maps, NFID is not publicly accessible.
Insurers typically utilise NFID to evaluate flood risk for individual properties and determine premiums based on this risk, along with factors such as building type, location, and claims history.
However, insurers retain discretion in determining which criteria to use for assessing flood risk. They may analyse data from various sources, including local government flood maps, historical flood records, terrain data, and insurance claims data.
Insurers assess how often a property is expected to flood, how severe the flooding may be, and how deep the flood can get.
For more information, please refer to the Insurance Council of Australia.