Australian home insurance in crisis?

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.

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.

Share this news item:

Insurance News

Clear

Why SMEs should double-check AI insurance advice

22 Jul 2026: Paige Estritori

Australian businesses are increasingly using AI tools to research products, shortlist providers and understand policy options. That convenience now comes with a clear warning for small business owners: not every insurance answer surfaced by AI search is coming from a licensed, accountable or locally relevant source. - read more

Lifeline Breach Puts Cyber Cover Back on the SME Agenda

15 Jul 2026: Paige Estritori

A reported data breach involving Lifeline Australia has renewed attention on a widening protection gap in the Australian cyber insurance market. While Lifeline has indicated that help-seeker and financial information were not compromised, the incident is a timely reminder that staff, volunteer, client and supplier data can still create serious legal, operational and reputational exposure for any organisation. - read more

Could NSW Levy Reform Make Insurance More Affordable for Small Business?

08 Jul 2026: Paige Estritori

New analysis released by the Insurance Council of Australia has put renewed attention on a major cost pressure for NSW businesses: the emergency services levy, commonly known as the ESL. The levy is currently collected through insurance premiums, meaning businesses that choose to insure their assets can face a higher cost for doing so. - read more

What IAG’s Modular Shelter Move Means for SMEs

01 Jul 2026: Paige Estritori

IAG’s latest investment through Firemark Ventures is a useful signal for Australian business owners: disaster recovery is no longer just about paying claims after the event. It is increasingly about helping people and enterprises stay operational, connected and on-site while rebuilding happens around them. - read more

New Crane Cover Highlights the Insurance Gap for High-Risk Trades

24 Jun 2026: Paige Estritori

A new specialist insurance product for Australian crane and rigging operators is a timely reminder that not every business fits neatly into a standard policy box. ARTes Specialty, working with wholesale provider Mobius Insurance, has launched an integrated crane and rigging policy for the local market, adding to its earlier Australian offerings for commercial loggers and contractors’ plant and equipment. - read more

Click for more Insurance News

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!

... Start your household insurance quote here ...