The information on this website is general in nature and does not take into account your objectives, financial situation, or needs. Consider seeking personal advice from a licensed adviser before acting on any information.
Warmer temperatures linked to climate change are likely to make home insurance unaffordable for over 500,000 homeowners in Australia by 2030, according to a report from the Climate Council.
Climate Council released the report after storms and floods battered Australia's east coast in February and March, following bushfires that killed 33 people and tens of millions of wild animals.
The report determined that climate change will exacerbate the frequency and severity of extreme weather events in Australia, pushing insurance premiums to alarming levels.
An estimated 521,000 properties nationwide would sustain annual damage of one percent or more to their total replacement value by 2030. This would make insurance unaffordable for most of these residents.
Climate change is likely to have a significant impact on the value of property in Australia, with the number of affected properties growing under higher emissions scenarios.
Cutting emissions could save thousands of homes from further damage.
Insurance providers are claiming that the Australian government should spend more money on building better flood walls and levees in order to protect homes from extreme weather.
According to the Insurance Council of Australia, the estimated A$3.35 billion ($2.4 billion) in insured losses from this year's east coast floods makes them the costliest flood in Australia's history.
Insurance Council of Australia chief executive Andrew Hall told AFP "The string of extreme weather events, particularly in the last decade, has made us very much at the top of the list when it comes to costly payouts,"
According to a 2015 study, 2 percent of Australia's housing stock is at risk for constant flooding and 15 percent is at risk for occasional flooding.
During the floods that claimed at least 21 lives in Eastern Australia, Lismore was hit hard by 14.3-meter (47-foot) floodwaters that swept away cars and stranded locals on the roofs of their homes awaiting rescue by boat or helicopter.
The Lismore City Council has proposed a solution for the problem of flooding in vulnerable areas. They want to relocate residents from flood-prone locations and allow them to move up into higher grounds in exchange for their properties.
Published:Thursday, 19th May 2022 Author:
Please Note: We do not endorse any specific products or companies. Some content is sourced from third parties, including press releases, and may not be independently verified for accuracy or completeness.
Renewed debate around proposed changes to the NSW workers compensation system is a timely reminder that employee injury cover is not a set-and-forget obligation for business owners. While the details of reform are still being scrutinised by government, regulators, unions, employers and insurers, the underlying issue is clear: claims costs, psychological injury trends and scheme sustainability are placing pressure on how workplace injury risk is funded and managed. - read more
Fresh industry attention on cyber underinsurance is a timely reminder that many Australian small and medium businesses are still treating digital risk as an IT problem rather than a balance sheet risk. As more trading, payments, customer records, bookings and supplier relationships move online, a cyber incident can quickly become a cash flow, legal, operational and reputational event. - read more
Fresh industry attention on disaster resilience is a timely reminder that Australian small and medium businesses cannot treat severe weather as an occasional inconvenience. The message emerging from the insurance sector is increasingly consistent: premiums, availability of cover and claims outcomes are being shaped not only by what a business owns, but by where it operates, how exposed it is, and what practical risk controls are in place. - read more
Lithium-ion batteries are moving from a workplace convenience to a serious insurance consideration for Australian small and medium businesses. As more businesses rely on rechargeable tools, e-bikes, scooters, point-of-sale devices, backup power units and portable electronics, insurers are paying closer attention to how those items are stored, charged and managed. - read more
Fresh industry updates on severe weather claims are a reminder that storm, flood and cyclone losses are no longer rare planning scenarios for Australian small and medium businesses. Claims linked to major weather systems affecting Queensland and New South Wales continue to move through insurer assessment, repair and settlement processes, with businesses facing familiar pressure points: damaged premises, interrupted trading, ruined stock, delayed repairs and uncertainty about what is actually covered. - read more
Time for a 2nd opinion on your Home & Contents Insurance?
We now offer a nation-wide panel of specialist Household Insurance brokers ready to help you lock down the best value home and contents insurance solution - tailored to your individual needs and guaranteed to save you money!
When embarking on the entrepreneurial journey of a start-up, it's imperative to safeguard the nascent enterprise with a reliable insurance safety net. Insurance acts as a vital shield, protecting the hard work and innovation of new businesses against unforeseen events and liabilities which can arise in the unpredictable world of start-ups. - read more
Workers compensation insurance is a core obligation for many Australian employers, but the rules are not identical across every state and territory. This guide explains when cover may be required, how obligations can vary, and what business owners should check before hiring staff, engaging contractors or using labour hire workers. - read more
In today's ever-evolving business landscape, risk management has become an essential practice for small business owners. With uncertainties ranging from economic fluctuations to natural disasters, being prepared for potential crises is more important than ever. As an owner, you must be proactive in identifying and mitigating risks to safeguard your business's future. - read more
Starting a new business is an exciting and challenging endeavor, particularly in the vibrant and innovative startup landscape of Australia. However, amidst the rush of ideas and the race to launch, many startups overlook the crucial aspect of insurance. Insurance is not merely an additional cost but a vital protective measure that safeguards your emerging business against unforeseen hurdles. - read more
Running a business in Australia comes with its own unique set of challenges and rewards. One of the most crucial aspects of ensuring your business thrives is having comprehensive insurance in place. But what exactly does 'comprehensive insurance' mean for your business? - read more
Knowledgebase
Premium: The amount paid for an insurance policy, usually on a regular basis, to maintain coverage.
No comments yet. Be the first to share your thoughts.