Compare Life Insurance :: News
SHARE

Share this news item!

Climate Change Threatens Australian Suburbs with Unaffordable Insurance

Climate Change Threatens Australian Suburbs with Unaffordable Insurance

More than 4% of Australian properties are currently facing heightened risks from natural hazards exacerbated by climate change, rendering insurance coverage often unaffordable or unavailable, according to recent findings by Climate Valuation.
An analysis of over 15 million properties across 15,000 suburbs also highlights that an additional 10% are at moderate risk from disasters such as floods, bushfires, tropical cyclones, coastal inundation, and extreme winds.

Properties identified as high-risk are likely to encounter skyrocketing insurance costs, according to the report commissioned by the Climate Council. Karl Mallon, the founder of Climate Valuation, emphasized the immediacy of the threat posed by climate change, urging decision-makers to address the concerning statistics detailed in the research.

The climate group's modelling identifies 86 suburbs as "critical climate risk zones," wherein 80% to 100% of properties are at risk of becoming financially uninsurable if current trends persist.

The escalating risks and rising cost of insuring these properties underscore the broader financial repercussions of climate change on Australian communities. The Insurance Council of Australia (ICA) has noted that insurers have long cautioned about these escalating risks, tying rising insurance premiums to extreme weather events, which have resulted in $4.5 billion insured costs annually over the past five years. This marks a nearly 70% increase compared to the previous five-year period, with projected costs reaching $35 billion by 2050 if no mitigating actions are undertaken.

The report highlights the potential backlash on the economy if insurance becomes inaccessible, with valuable community resilience being the key to maintaining affordability and availability of coverage.

The ICA advocates for significant investments in resilience and mitigation, such as a proposed $30 billion investment in flood defenses. It also urges the removal of unfair state insurance taxes and the promotion of household resilience measures, which some insurers already incentivize through premium reductions.

Climate Valuation additionally suggests several measures including retrofitting homes, relocating properties in extreme cases, halting development in high-risk areas, and ensuring that new constructions are climate-resilient as per the National Construction Code adaptation. These steps, it argues, would not only protect communities but also relieve pressure on insurance premiums, delivering what they describe as a "double dividend."

The report calls for a comprehensive integration of "climate proofing" into national standards to prevent placing more Australians in harm's way and to foster the development of sustainable, resilient infrastructure.

Published:Thursday, 17th Apr 2025
Source: Paige Estritori

Share this news item:

Insurance News

Isuzu Australia Introduces Innovative Truck Leasing and Finance Services Isuzu Australia Introduces Innovative Truck Leasing and Finance Services
09 Mar 2026: Paige Estritori

Isuzu Australia has announced the establishment of Isuzu Financial Services Australia (IFSA), a pioneering truck leasing and finance company set to commence operations in the third quarter of next year. This initiative marks the first time the Isuzu Group has founded such a company outside Japan, highlighting the strategic importance of the Australian market. - read more
Inattention and Speed Identified as Primary Causes of Major Truck Crashes Inattention and Speed Identified as Primary Causes of Major Truck Crashes
09 Mar 2026: Paige Estritori

The National Truck Accident Research Centre (NTARC) has released its latest Major Incident Investigation Report, shedding light on the predominant causes of significant truck crashes across Australia. The findings reveal that human factors, particularly inattention, distraction, and inappropriate speed, continue to be the leading contributors to these incidents. - read more
New Legislation Prohibits Life Insurers from Using Genetic Test Results New Legislation Prohibits Life Insurers from Using Genetic Test Results
08 Mar 2026: Paige Estritori

The Australian government has enacted legislation prohibiting life insurers from using the results of genetic tests to refuse coverage or increase premiums. This landmark decision aims to eliminate genetic discrimination and encourage individuals to undergo potentially life-saving genetic testing without fear of financial repercussions. - read more
Australian Insurers Face Challenges in Cyber and AI Risk Readiness Australian Insurers Face Challenges in Cyber and AI Risk Readiness
08 Mar 2026: Paige Estritori

Recent findings from the PwC Insurance Banana Skins Survey have raised concerns about the preparedness of Australian insurers in managing emerging risks, particularly those associated with cyber threats and artificial intelligence (AI). The survey, which gathered insights from 698 insurance executives across 42 territories, including 37 from Australia, indicates that Australian insurers scored 6.6% lower on the Preparedness Index compared to their global counterparts. - read more


Life Insurance Articles

Health Fund Rebates 101: What Every Australian Needs to Know Health Fund Rebates 101: What Every Australian Needs to Know
Exploring the realm of health insurance can be like navigating a labyrinth, replete with complex terms and varying policies. Among these, health fund rebates emerge as a crucial element, particularly for young Australians embarking on their journey of health coverage. Fund rebates can significantly lighten the financial burden, transforming the quest for health insurance from daunting to empowering. - read more
Why Income Protection Insurance Matters for Every Australian Earner Why Income Protection Insurance Matters for Every Australian Earner
The unpredictable nature of life can often leave us vulnerable to financial uncertainty, especially when it comes to our ability to earn an income. Whether due to illness, injury, or unexpected job loss, the loss of income can have a devastating impact on our financial stability and quality of life. This is where the importance of insurance in financial planning becomes evident. - read more
How Accidental Income Protection Insurance Can Provide Peace of Mind How Accidental Income Protection Insurance Can Provide Peace of Mind
Accidental income protection insurance is a type of policy that provides financial support if you are unable to work due to an accident. Unlike regular income protection insurance, which can cover illnesses and injuries, this specific insurance focuses solely on accidents. - read more
Income Protection Insurance for Personal Trainers: What You Should Know Income Protection Insurance for Personal Trainers: What You Should Know
Imagine waking up to find you're unable to work for an extended period due to an unexpected injury. For personal trainers, whose livelihood depends on their physical ability, this scenario can be both financially and emotionally daunting. - read more


Start Here !
life insurance
Apply now for your free Insurance assessment and price comparisons!

Start Here

Life Cover Amount:
Postcode:


All quotes are provided free and without obligation. We respect your privacy.
Knowledgebase
Rider:
An optional provision added to an insurance policy that provides additional benefits or coverage.