EVERY Queensland household could be forced to pay higher premiums or taxes to subsidise insurance cover for people in flood-prone areas.

A federal insurance review panel - established in the wake of Queensland's summer of disasters - is set to recommend policyholders, taxpayers or ratepayers fork out more money to help make insurance more affordable for "high-risk" households.

The proposed hike comes as Premier Anna Bligh prepares to hand down the Holmes Flood Commission of Inquiry's draft report into the floods and Cyclone Yasi tomorrow.

The twin disasters left Queensland with a $6.8 billion damage bill.

The head of the Federal Government's independent Natural Disaster Review Panel, John Trowbridge, admitted the proposal was unlikely to be popular.

"If it came all from insurance policyholders then basically you might have to pay $20 to $30 on top of your premiums to cover the risk for the high-flood ones," he said. "If it were ratepayers, then your council rates may be $20 or $30-a-year higher."

Asked how a proposal would be sold to the public, Mr Trowbridge said, "that's an interesting question. In a sense, that's a dilemma".

The review, to be handed to Assistant Treasurer Bill Shorten by the end of September, was sparked after concerns about the availability and affordability of insurance following Queensland's twin flood and cyclone disasters.

"There needs to be a way of dealing with the high-risk properties and that's probably going to involve some form of discount to people with a higher-risk property, or at least some of the people," Mr Trowbridge told The Sunday Mail.

Households with flood-prone properties would still pay more for insurance than those in low-risk areas, but they would receive a discount to help make their premiums more affordable.

It could encourage households not to opt out of insurance and would leave taxpayers with a smaller damage bill after the next natural disaster.

"One of the challenges ... is to figure out when we say it's (insurance) affordable and where we put them (high-risk property owners) into the scheme," he said.