New flood risk insurance pricing "just the beginning"

A climate economist says the introduction by Tower Insurance of a new pricing model for flood risks is just the beginning. Tower is the first insurance company to offer customers a low, medium or high flood risk rating for their home.

It says 90 percent of its customers will receive an average reduction in the flood risk portion of their premium of $25, and 10 percent will see an average price rise of around $50. Susie speaks with Tower Chief Executive Blair Turnbull,  and climate economist and modeller Belinda Storey whose research suggests 10,000 homes in coastal and flood plains are at risk. She says premium hikes in high risk areas will continue.