Some Australian families are spending two months of their annual income on home insurance, or going without cover, as more frequent disasters inflate premiums.
Nearly one in eight, or an estimated 1.24 million households, face an insurance affordability crisis, according to research released on Monday by the Actuaries Institute.
State governments face pressure to cut levies and duties on insurance to make it more affordable and there are calls for funding to make homes, roads and bridges more able to withstand disasters.
The research showed the median home premium had its biggest jump in two decades, with home insurance premiums surging 28 per cent in the year to March, partly caused by soaring rebuilding costs.
Insurance Council of Australia CEO Andrew Hall said governments could provide relief on insurance costs by cutting insurance taxes.
https://www.abc.net.au/news/2023-08-14/insurance-crisis-disaster-affordability/102727416
A new report by the Actuaries Institute shows nearly one in eight Australian households is facing home insurance affordability stress.
Households spending more than a month’s worth of their gross annual income on home insurance rose from 10 to 12 per cent.
Who should pay for an increase in home insurance claims? One in 25 Australians have lodged an insurance claim because of extreme weather since 2020, but should the remaining policyholders be responsible for sharing the cost of increased premiums?
The Actuaries Institute points to the introduction of insurance pools as a way to reduce costs, similar to the federal government’s cyclone insurance pool.
Mr Paddam said insurance still worked for seven out of eight Australian households.
