New research from a coalition of advocacy groups has found the home and contents insurance market is failing to protect people against extreme weather events, with customers struggling to access and afford the insurance they need.

The report, commissioned by CHOICE, Climate Council, Financial Counselling Australia, Financial Rights Legal Centre, and the Tenants’ Union of NSW, is based on a nationwide survey of home insurance policyholders, in depth interviews with people affected by extreme weather events and interviews with key civil society groups.

“Two in five respondents to our national survey of home and contents insurance policyholders reported that they had been impacted by extreme weather events in the past five years, but our research found that the insurance market is failing to cover these events fairly and affordably. Many people are being forced to pay higher premiums, reduce their cover, or abandon insurance entirely,” says CHOICE CEO, Alan Kirkland.

“We’re calling for coordinated action by governments and the insurance industry to ensure that people are effectively protected against the effects of extreme weather events. Home and contents insurance needs to be simpler, fairer and more affordable. We also need solutions to the problems that can’t be solved by insurance alone - such as planning for relocation of communities in high-risk areas and funding for people to make their homes more resilient,” says Kirkland.

Insurance unaffordability is worse in disaster-prone areas, and many households on low incomes have been priced out of the insurance market completely.

Trial home insurance subsidies in communities where insurance is unaffordable, particularly for people on low incomes.

“This report really brings home how difficult accelerating climate change is making insurance unaffordable for so many, particularly those who are most vulnerable. This is a wicked problem that we need to act on now before things get even worse.” - Leading economist and Climate Councillor, Nicki Hutley.

  • reddig33@lemmy.world
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    1 year ago

    Broken? People have been warned for years about building in climate related disaster prone areas. This is just part of the end result.