Report details failures in Australian insurance market amid climate risk

Climate Council and Choice commissioned a report examining how the insurance market responds to extreme weather events, such as floods, bushfires, and cyclones, which are increasing due to climate change. The research identified five key issues with the home and contents insurance market. These issues include complex product design, unaffordable premiums, and difficulty accessing information on natural hazard risk.

The report found that 87% of policy holders saw their premiums rise during their most recent renewal, with unaffordability being worse in disaster-prone areas. Furthermore, many insurers do not recognize actions taken by homeowners to mitigate risk when setting policy prices.