Senate Probes Climate's Toll on Insurance Costs and Access

The information on this website is general in nature and does not take into account your objectives, financial situation, or needs. Consider seeking personal advice from a licensed adviser before acting on any information.

Deputy leader of the Australian Greens and New South Wales Senator Mehreen Faruqi prompted the initiative by advocating for the formation of the Select Committee on the Impact of Climate Risk on Insurance Premiums and Availability.

This committee aims to scrutinize the challenges of insurance unaffordability affecting certain regions prone to climate-induced disasters and the barriers preventing some individuals from obtaining coverage. Additionally, it will assess how premium increases are linked to climate change and its impact on various insurance products, even those not directly exposed to climate risk.

The committee is also keen to understand the distributional effects of rising premiums across different communities, regions, and demographics. They will examine the role governments play in promoting climate adaptation and resilience measures to reduce insurance costs.

Labor Senator Tony Sheldon remarked that the committee’s efforts would help pinpoint areas where the government can support Australians facing escalating insurance rates.

"Since July 2022, more than half of Australia's local government areas have encountered natural disasters," Sheldon shared in an interview with insuranceNEWS.com.au. "Ensuring community safety before, during, and after these events is a chief concern for the Albanese administration."

The committee is scheduled to deliver its final report by November 19.

The Insurance Council of Australia (ICA) plans to review the committee’s terms of reference closely. According to the ICA spokesperson, the insurance industry has been actively participating in the House Economics Committee's inquiry into the responses to the 2022 flood claims, which also considers affordability and the efficacy of mitigation strategies.

“The ICA will coordinate with the Senate committee to streamline efforts and avoid redundancies with the work being done by the House Economics Committee,” the spokesperson added.

Published:Saturday, 18th May 2024
Author: Paige Estritori

Please Note: We do not endorse any specific products or companies. Some content is sourced from third parties, including press releases, and may not be independently verified for accuracy or completeness.

Share this news item:

Insurance News

Clear

Record Complaints Highlight Challenges in Australian Insurance Claims Processing

29 Apr 2026: Paige Estritori

The Australian insurance industry is currently facing an unprecedented surge in consumer complaints, primarily due to delays in processing claims. This development underscores significant challenges within the sector, particularly affecting tradespeople and small business owners who depend on timely claim resolutions to maintain their operations. - read more

Assessing the Impact of Market Consolidation on Australian Insurance Competition

29 Apr 2026: Paige Estritori

The Australian insurance industry has undergone significant consolidation in recent years, leading to concerns about reduced competition and its potential impact on consumers, particularly tradespeople and small business owners who rely on diverse and competitive insurance options. - read more

Australian Senate Prohibits Use of Genetic Test Results in Life Insurance Underwriting

29 Apr 2026: Paige Estritori

The Australian Senate has recently passed legislation that prohibits life insurers from using genetic test results in their underwriting processes. This landmark decision aims to protect consumers from potential discrimination based on their genetic information and to ensure fairness in the assessment of life insurance policies. - read more

Government Steps In to Secure Fertiliser Supply for Australian Farmers

29 Apr 2026: Paige Estritori

In response to global supply chain disruptions affecting fertiliser availability, the Australian government has partnered with chemical companies CSBP and Incitec Pivot to ensure a steady supply for the nation's farmers. This initiative comes amid challenges posed by the closure of the Strait of Hormuz, a critical passage for global trade, which has led to increased prices and uncertainty in the fertiliser market. - read more

CGU and WFI Insurance Collaborate with Ag Guard to Boost Agricultural Coverage

29 Apr 2026: Paige Estritori

In a strategic move to bolster agricultural insurance offerings, IAG's Intermediated Insurance Australia business, encompassing the CGU and WFI Insurance brands, has announced an exclusive partnership with Ag Guard, a technology-driven agricultural insurance agency. This collaboration, set to commence in June 2026, aims to enhance risk selection processes and claims handling capabilities. - read more

Click for more Insurance News