Soaring Insurance Premiums Amid Changing Climate
Soaring Insurance Premiums Amid Changing Climate
Climate change is amplifying extreme weather events, leading to substantial infrastructure damage. In response, insurance companies are recalibrating premiums to reflect the increased risk, not only in high-risk flood-prone zones but also across broader regions.
Statistics from the Actuaries Institute indicate a 9% rise in median insurance premiums within a year, with marked surges of 30% in cyclone and flood-prone areas.
Living in the outskirts of south Brisbane, Ms. Systa frequently contends with storms, a threat she identified as particularly perilous, especially those involving hail and intense winds. "We're getting more extreme storms, and it’s that kind of damage that I am probably most concerned about."
A recent survey conducted by Parents for Climate in collaboration with the Climate Council reveals a concerning trend: 71% of parents express anxiety over the escalating cost of insurance driven by climate impacts.
Economist and Climate Councillor Nicki Hutley noted that energy reliance on oil and gas is exacerbating both climate and cost-of-living crises. "Aussies feel the strain every time we fill up cars with pricey petrol or use expensive gas to heat our homes," she explained. "These polluting products are increasingly being reflected in inflation charts."
The survey, covering 1590 participants, discovered that nearly 30% of parents are now finding it difficult to pay for basic necessities, including groceries, utilities, and insurance premiums.
The unfolding scenario underscores a rising urgency for cleaner energy solutions. Households seeking to alleviate costs have shown a growing interest in sustainable alternatives like rooftop solar panels, household batteries, and energy-efficient appliances. Ms. Systa, although benefiting from solar provisions, stressed the need for greater governmental intervention to alleviate the costs of purchasing electric vehicles.
"We have two gas-guzzling cars that are both costly to maintain and environmentally damaging. I'd love the chance to switch to an EV, but it's currently beyond our financial reach," she said.
As reported by AAP, these insights highlight the increasingly intertwined nature of climate consciousness and financial realities, igniting public discourse on feasible solutions amid pressing environmental changes.
Published:Thursday, 14th Nov 2024
Source: Paige Estritori
Share this news item:
| Insurers Face Intense Scrutiny Over Quake Claim Rejections 21 Nov 2024: Paige Estritori In recent months, Muswellbrook, a town in New South Wales, has experienced a series of earthquakes that have left residents grappling with both physical destruction and emotional distress. Criticism is mounting against insurers as more than 600 claims have emerged, following these seismic events, yet many remain unresolved or denied. - read more |
| AI Regulations: A Web of Complications 20 Nov 2024: Paige Estritori The Insurance Council of Australia (ICA) has raised concerns about the potential fallout from a fragmented regulatory approach to artificial intelligence and automated decision-making in the industry. There is fear that this patchwork of reforms could result in conflicting requirements, heavier compliance burdens, and increased industry confusion. - read more |
| APRA Survey Reveals Impact of Climate Change on Insurance Industry Practices 19 Nov 2024: Paige Estritori A recent analysis by the Australian Prudential Regulation Authority (APRA) reveals that over 90% of general insurers and reinsurers anticipate climate change will influence their underwriting procedures, posing new challenges to the industry. - read more |
| Fraudulent Claims Lead to Complete Denial of Compensation 18 Nov 2024: Paige Estritori In a remarkable case highlighting the severe consequences of insurance fraud, an individual's attempt to inflate a theft insurance claim has resulted in the total denial of compensation. Despite a significant portion of the claim being genuine, fraudulent actions negated any potential payout. - read more |
| Soaring Insurance Premiums Amid Changing Climate 14 Nov 2024: Paige Estritori As climate change persists, the impact of severe weather on insurance premiums is becoming more evident, pushing affordability out of reach for many Australians. Bernadette Systa, a mother of five, faced an undeniable financial strain as her annual home and contents insurance costs surged from a modest amount to more than twice what she initially paid. This experience echoes a growing dilemma faced by households across the country. - read more |
| Insurers Eye AI for a Technological Future 12 Nov 2024: Paige Estritori The insurance sector is gearing up for a significant technological transformation with plans to integrate artificial intelligence (AI) extensively in the coming years. A survey conducted by Earnix highlights that over two-thirds of insurance companies are planning to deploy AI tools within the next two years. This trend marks a pivotal moment in the industry's journey toward modernization. - read more |
| Understanding the Tax Benefits of Income Protection Insurance in Australia Income protection insurance is a crucial safeguard for many Australians, designed to provide financial stability in the event that you are unable to work due to illness or injury. This type of insurance delivers a regular income, usually up to a certain percentage of your regular earnings, ensuring that you can meet your financial obligations even when your health prevents you from earning a wage. - read more
|
| Tips and Tricks for Fitting Insurance Premiums into Your Monthly Budget Understanding the significance of insurance in managing your finances is crucial. It acts as a safeguard, providing a buffer against unexpected losses or damage to your most valuable possessions. However, the costs associated with this necessary protection can be challenging to manage, especially when it comes to fitting insurance premiums into a monthly budget. - read more
|
| Life Insurance for Millennials: Why It's Essential. As a millennial, you may believe that you're young, healthy, and have plenty of time to prepare for the future. However, it's essential to understand that life is unpredictable, and unexpected events can occur at any time. This is why it's essential to consider life insurance, particularly if you have financial responsibilities, dependents, or both. - read more
|
| Top Strategies for Long-Term Income Protection in Australia Income protection is a safeguard that ensures you have a steady stream of income if you're unable to work due to illness or injury. This type of insurance can be a lifesaver, providing peace of mind and financial stability during challenging times. - read more
|
| The Impact of Parenthood on Your Life Insurance Choices Life insurance, a contract between an insurer and a policyholder, is designed to provide financial protection to loved ones in the event of the policyholder's death. For parents, this protection takes on a new level of significance. The birth of a child heralds a profound shift in priorities, with a focus on safeguarding the future of one's family. Hence, understanding life insurance options becomes a crucial aspect of responsible parenting. - read more
|
| Strategies to Use Life Insurance in Funding Shareholder Agreements Shareholder agreements lay the cornerstone for stable business relationships and continuity in Australia. Acting as a contract among business owners, these agreements set forth the expectations, rights, and obligations of all parties involved. They are particularly vital in delineating clear paths for dispute resolution, succession planning, and the transfer of ownership shares under varied circumstances, including the untimely death or departure of a shareholder. - read more
|
A set amount of time after the premium is due during which a policyholder can make a payment without the insurance coverage lapsing.