Insurers have received $2.34 billion worth of claims stemming from the devastating summer bushfires.
Insurance Council chief Rob Whelan told a parliamentary inquiry on Friday the bushfires had caused immense physical, emotional and financial stress.
"Our latest data shows insurers have received 37,804 claims totalling $2.34 billion," he said.
"Already, almost three-quarters of 9227 residential building claims and 90 per cent of 14,106 contents claims have now been finalised.
"This means rebuilds are under way, repairs have been completed, belongings replaced and/or payments provided."
Clean-up programs in Victoria and NSW were making solid progress.
But the council was concerned about the affordability of insurance, especially in NSW, which acted as a disincentive for property owners.
"Unfortunately, all state and territory governments - with the exception of the ACT - add a stamp duty of between nine to 11 per cent, which means households and businesses pay between 19.9 per cent and 22 per cent in tax on their insurances."
A report commissioned by the NSW government recommended reform of insurance stamp duties and the emergency services levy.
The council has also called for improvements to land-use planning and building codes to ensure homes and businesses built in high-risk areas are more capable of withstanding the impact of extreme weather and bushfires.
"Where risk is reduced ... insurers are willing to slash their premiums," Mr Whelan said.
Australian Associated Press