Weekend Times


Google Workspace

Business News

Home insurance bills are soaring as climate risks grow. The government should step in

  • Written by Paula Jarzabkowski, Professor in Strategic Management, The University of Queensland
Home insurance bills are soaring as climate risks grow. The government should step in

The Actuaries Institute of Austalia[1] has just confirmed what many Australian households already know – home insurance is increasingly unaffordable.

It found average premiums climbed 28% in the year to March, while premiums for higher-risk properties, such as those in flood-prone areas, climbed 50%.

The institute also found 12% of Australian households – 1.24 million – are experiencing extreme home insurance affordability stress, defined as paying more than four weeks of gross household income on premiums.

Twelve months ago, this figure was 10%, or 1 million households.

Actuaries Institute of Australia[2] While in the past affordability had been recognised as a problem affecting vulnerable Australians, it has got to the point where it is hitting households across the socio-economic spectrum. And not only in Australia. Insurers are increasing premiums in locations at high risk of climate-related damage throughout the world and even withdrawing home insurance completely in places such as California and Florida. The high premiums are spreading to households in lower-risk locations through a complex interconnected system of rising private reinsurance[3] charges (insurance for insurers), more frequent and worse weather events, and increasing rebuilding costs. The case for a government-owned reinsurance pool The Actuaries Institute put forward risk pooling[4] as an emergency solution. It would work through a government-owned and run “reinsurance pool”, providing nationwide coverage for claims relating to extreme weather events. Private insurers would pass on their risk to the state-owned pool, which would use the pooled premiums to ensure every insurer was covered. In the past, the insurance industry has been overwhelmingly opposed to the idea, viewing it as interfering in a traditionally private market. As recently as March 2022, as Queensland and NSW reeled in the aftermath of catastrophic flooding and its implications for insurance[5], the Insurance Council of Australia responded to calls to extend the newly created cyclone reinsurance pool[6] by saying the private sector did things better[7]. The industry’s concerns are not totally unfounded. Setting up a risk pool without taking steps to mitigate the underlying risk would simply mask, or even exacerbate, the problem. It could facilitate insurance and rebuilding in high-risk areas that will suffer repeated losses. Risk pools have to include mechanisms that tie insurability to long-term risk reduction through mitigation, updated planning and building regulations, and disaster-resilient rebuilding programs, informed by nationwide data collection. Read more: Victims of NSW and Queensland floods have lodged 60,000 claims, but too many are underinsured. Here's a better way[8] Governments are stepping in elsewhere Extreme weather risk pools work in advanced economies around the world. Some, such as the United States’ National Flood Insurance Program[9], mask risk while allowing rebuilding in disaster-prone areas. But others, such as those in Spain[10], France[11] and Switzerland[12], integrate risk pooling with risk reduction. Australia would need to draw on the experience of the countries that do it well, doing everything we can to reduce underlying risk, including by changing where and how we build, and relocating people from disaster-prone areas. Read more: After the floods comes underinsurance: we need a better plan[13] If we don’t do something along the lines of government-provided and mandated reinsurance, insurance and its enormous benefits will no longer be available to an increasing share of Australians, regardless of their financial means. The inclusion[14] of the idea in the Actuaries Institute report might be an indication that opposition is softening. The future of home insurance could depend on it. References^ Actuaries Institute of Austalia (www.actuaries.asn.au)^ Actuaries Institute of Australia (www.actuaries.asn.au)^ reinsurance (www.ft.com)^ risk pooling (www.actuaries.asn.au)^ implications for insurance (www.afr.com)^ cyclone reinsurance pool (treasury.gov.au)^ did things better (www.insurancenews.com.au)^ Victims of NSW and Queensland floods have lodged 60,000 claims, but too many are underinsured. Here's a better way (theconversation.com)^ National Flood Insurance Program (cup.columbia.edu)^ Spain (fdslive.oup.com)^ France (www.ccr.fr)^ Switzerland (www.vkg.ch)^ After the floods comes underinsurance: we need a better plan (theconversation.com)^ inclusion (www.actuaries.asn.au)Authors: Paula Jarzabkowski, Professor in Strategic Management, The University of Queensland

Read more https://theconversation.com/home-insurance-bills-are-soaring-as-climate-risks-grow-the-government-should-step-in-211515

The Weekend Times Magazine

Out of 500 Nominations, My Guardian Breaks into Top 3 at Australia’s Prestigious 2025 ACE Awards

Sydney, 22 July 2025 – From humble beginnings to national recognition, My Guardian is celebrating a milestone achievement - being selected as one of the top three finalists in the...

Body Contouring Melbourne: Sculpting Confidence with Safe and Effective Treatments

Achieving your ideal body shape often takes more than just diet and exercise. For those looking to enhance their natural contours, body contouring Melbourne clinics offer advanced treatments designed to reduce...

Wedding DJ vs Live Band: Which Is the Right Choice for Your Wedding?

Choosing the right music for your wedding is one of your most important decisions. Music has the power to set the mood, create memorable moments, and ensure your guests have...

Horse Float Maintenance: Keeping Your Investment in Top Shape

Horse floats are equipment that are required for the safe and efficient transportation of horses. Long life and performance are assured with proper maintenance. Safety risks and structural damage may...

4 Simple Tips To Help You Relax This Weekend

After a long week of hard work, a relaxing weekend is much needed. Often, some people just don't know how to lay back and enjoy their weekend without getting stressed...

Film Review: Why Casablanca Still Captivates Audiences Eight Decades On

Few films have endured in the public imagination quite like Casablanca. Released in 1942 during the height of World War II, the film was not expected to become a cultural...

6 things that can go wrong if your iron isn't adequate before falling pregnant

Preconception care involves making sure you have adequate supply of all the nutrients essential to the health of the sperm and ova (egg) and to fetal development. Preconception also involves...

What Happens During a Rental Property Inspection?

The rental property inspection is one main factor that sometimes leaves tenants wondering a lot of things. Though it might occasionally feel like a scary procedure, it is a lot...

Reliable Air Conditioning Installation for Comfortable Living

When it comes to creating a comfortable indoor environment, having a dependable cooling system is essential—especially during Melbourne’s unpredictable summers. A professional air conditioning installation not only ensures optimal temperature control...

hacklink hack forum hacklink film izle hacklink หวยออนไลน์kavbetPusulabetสล็อตเว็บตรงgamdom girişpadişahbetMostbetcarros usadoskn777trendbetcocktail glassessetrabetjojobetDeneme Bonusu Veren Sitelerpusulabet girişbetnanotürk ifşaBets10jojobetMavibet色情casibomyakabet1xbet girişjojobetgrandpashabetbetofficekingroyalholiganbetultrabetfixbetbets10royalbetmamibetmeritkingcasibommeritkingcasibomugwin288casibommeritkingcasibom girişJojobettaraftariummadridbetPorno İzlecasibom girişkolaybetjustintvCasibombetpuantrgoalsartemisbet girişdinamobetbetnanovdcasinoSekabet girişmarsbahisultrabetprimebahisselçuksportsprimebahistaraftarium24betciojojobetkulisbetbetnanoSahabetmr pachoaertyercasibomvbetkavbetkralbet girişmavibetmavibetCasibomdeneme bonusu veren siteleronwinonwinholiganbetantalya escortbetnano giriştimebetbetnanocasibom güncel girişcasibom girişbahiscasinojojobetbets10matbetKayseri Escortjojobet girişbettiltcasibom güncel girişpadişahbetaviator gamebahisobetparkcasibomcrown155 casinohb88aussuper96 loginjojobet girişpadişahbet주소모음 주소모아spin2u loginneoaus96 casino loginpadişahbetStreameastholiganbetmarsbahisxslotbets10ff29 casinobets10best e-wallet pokies 2025jojobetmatadorbetNo Deposit Bonus Casinos 2025casibomcasibomasdsadasdasdasdasfdasfasfsadfasdfsdfasdasdasdasdkingroyal girişjojobetpin upmamibetslot gacorcasibombetasusjojobetbest e wallet pokies australiahttps://mrvip77.comcanlı maç izlecratosroyaljojobet girişcasibomแทงหวย24casibomjokerbetjojobetgiftcardmall/mygiftsitus slot gacorJojobetsiti casino non aamssiti casino non aamsjojobetcasibom