Climate Change's Impact on Rising Home Insurance Premiums in Australia
Climate Change's Impact on Rising Home Insurance Premiums in Australia
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Insurance Australia Group (IAG), a leading insurer in Australia, has highlighted the significant role of climate change in driving up home insurance premiums.
The company reports that the increasing frequency and severity of weather events are major factors contributing to these rising costs.
A recent report from IAG indicates that severe storms, including hailstorms, are becoming more prevalent in densely populated regions of southern Australia. These events pose heightened risks to communities and infrastructure, leading to increased claims and, consequently, higher premiums. ([abc.net.au](https://www.abc.net.au/news/2025-11-04/climate-change-plays-role-in-growing-home-insurance-iag-warns/105964560?utm_source=openai))
William McDonnell, IAG's Chief Financial Officer, emphasized that while various factors influence insurance pricing, the component related to natural perils is gradually increasing. He stressed the need for urgent action to enhance the resilience of buildings and infrastructure to mitigate these risks. ([abc.net.au](https://www.abc.net.au/news/2025-11-04/climate-change-plays-role-in-growing-home-insurance-iag-warns/105964560?utm_source=openai))
For Australian homeowners and business owners, this underscores the importance of proactive risk management. Implementing measures to protect properties from severe weather events can not only reduce potential damages but also potentially influence insurance premiums. Staying informed about climate-related risks and engaging with insurers to understand coverage options are essential steps in navigating this evolving landscape.
Published:Wednesday, 4th Feb 2026 Source: Paige Estritori
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Knowledgebase
Insurance Deductible: the amount that an insured is required to contribute toward an insurance claim as stipulated in an insurance policy. Otherwise known as the "policy excess".
