Financial Services Minister Daniel Mulino has raised concerns about the rising number of uninsured households in flood-prone areas, as a ramp-up in premiums by insurance companies to reflect heightened risks make them unaffordable for many.

An inaugural Financial Review Insurance Forum on Tuesday heard that the widespread adoption of risk-based pricing by insurers – which refers to premiums being set based on the specific risks, like flood, faced by individual properties – was creating social equity issues and could trigger a rethink on regulation.