It’s official: climate change and the extreme weather it brings are pushing insurance costs through the roof for Australian families.
The Senate Inquiry Into The Impact Of Climate Risk On Insurance Premiums And Availability has been told some families are waiting years for insurance payouts following extreme weather events driven by climate, while others are being offered payouts which do not cover the cost of rebuilding.
Bushfire Survivors for Climate Action CEO Serena Joyner told the inquiry that many families already could not insure their properties for what they’re worth – and some could not afford to insure their properties at all.
‘What people are looking at doing is reducing the amount they’re insured, and these are those who can still afford to take out that insurance,’ Ms Joyner said. ‘People are having to make decisions that will end up reducing what they’re insured for.’
Ms Joyner said Australia needed to unite to reduce emissions this decade.
‘Australians are used to dealing with disasters, but it’s just not fair to expect them to keep copping these escalating costs.
‘We need deep emissions reduction this decade to protect Australian families from spiralling insurance costs – and the damage caused by worsening floods, fire and drought,’ Ms Joyner said.
‘You can’t put a fire out by pouring petrol on it.’
Insurance problems becoming intractable
Jan Harris lost her home in Tathra in the March 2018 Reedy Swamp Fire. ‘I feel increasingly nervous about the rising cost of insurance,’ she said. ‘Our premium has nearly doubled and I doubt we could afford to rebuild and replace the contents we have.
‘The contents we have now are of a lesser standard than what we lost, as we could not afford to rebuild to the required standard and have what we lost replaced. It is depressing knowing that what we own now is so much less likely to be destroyed in a fire, as it’s built to Bushfire Attack Level 40, but if premiums keep going up as retirees we may not be financially able to insure.”
Financial Rights Legal Centre Senior Policy and Communications Officer Julia Davis told the enquiry, ‘The problem of insurance in a changing climate has reached a point where the market is not going to solve these problems. It is time for government intervention.
‘The repercussions of these events extend beyond financial strain for consumers. The consequences have been deeply personal with individuals facing emotional stress, strained relationships and trauma.’
Ms Davis also said managing insurance claims was ‘nothing short of retraumatising’ for many consumers.
Financial Counsellors Australia National Coordinator for Disaster Recovery, Vicki Staff said her organisation had seen people being quoted over $60,000 per year for insurance.
‘They are now having to find an insurance product that doesn’t fully cover them for the natural perils they are the most at risk of,’ she said.
Widening gap
Insurance Council of Australia Chief Operating Officer Kylie McFarlane told the enquiry, ‘The widening gap between those who can afford insurance and those who can not, especially in areas vulnerable to extreme weather risk, is an issue that we need to address collectively.
‘Insurance prices risk, and the most effective way to reduce pressure on premiums and reduce the protection gap is to mitigate or eliminate those risks.
‘Industry and governments need to continue to tackle the underlying driver of worsening extreme weather, climate change, by maintaining a focus on achieving net zero by 2050 with a focus on driving down emissions this decade.
‘High inflation, worsening extreme weather events, expansion of development in high-risk areas and growing asset values are putting upward pressure on the affordability of insurance,’ said Ms McFarlane.
‘In 2022 alone insurers paid out over $7bn in extreme weather claims from 302,000 claims.’
And with the Minister for coalmine expansions Tanya Plibersek 👀 bringing it home for the coal industry, our fellow citizens concerned about affordable insurance and worsening climate catastrophe can just suck it up.🧨(Those $’shundredsof thousands ‘donations’ that the Labor political party collects form the fossil fuel industry needs to deliver ROI.)
At least Election’25 gives fellow concerned citizens the chance to vent their anger and🥾 out the reckless and dangerous climate criminal Labor political party.⚡
Always was and always will be: the weather
But it is ok to build on flood plains??? The new councils will pass lots of DA’s.
Climate change now controls the insurance premiums?, next it will give the greens something to think with, pretty clever this climate change… .