Insurers have criticised the federal budget for failing to properly invest in programs to prevent natural disasters.
The Insurance Council of Australia on Wednesday welcomed the Morrison government's $3.9 billion pledge for the natural disaster Emergency Response Fund.
The ICA also approved of the $300 million in grants to help flood-affected farmers rebuild damaged infrastructure, replace livestock and replant crops.
However, CEO Rob Whelan said little cash appeared to be directed towards disaster mitigation or resilience projects.
"None of this money appears to be directed towards preventing natural disasters or making homes and businesses more capable of withstanding the impact of floods or cyclones," he said on Wednesday.
"The ICA believes a significant portion of the Emergency Response Fund should have been directed to a program of investments in nation-building infrastructure projects, geared towards solving the problem of natural disasters rather than continually patching up communities and people in the aftermath."
Mr Whelan's comments came six weeks after Townsville and parts of central and western Queensland were hit with floods that caused billions of dollars in damage.
Queensland has 16 of the 20 most flood-prone electorates in Australia, as identified by the ICA using state and federal government data.
