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: If this information affects you, seek advice from a licensed professional.

Share this news item:

Insurance News

Clear

Club Marine Introduces Land-Based Insurance for Race Boats

24 Mar 2026: Paige Estritori

Club Marine, Australia's leading boat insurance provider, has announced a new partnership with the Australian Offshore Powerboat Club (AOPC) to offer specialised insurance coverage for race boats while they are on land. This initiative addresses a significant gap in the market, providing protection against accidental loss, damage, theft, or malicious damage to vessels during storage and transit. - read more

Significant Decline in Australian Commercial Insurance Rates

24 Mar 2026: Paige Estritori

Recent data from global insurance broker Marsh indicates a notable decline in commercial insurance rates across the Pacific region, with a 12% drop recorded in the last quarter of 2025. This marks the steepest decrease since early 2024, suggesting a softening market and increased competition among insurers. - read more

Cyclone Reinsurance Pool Reduces Premiums in High-Risk Areas

24 Mar 2026: Paige Estritori

The Australian Competition and Consumer Commission (ACCC) has released its fourth insurance monitoring report, revealing that the government's cyclone reinsurance pool has led to reduced insurance premiums for customers in medium to high cyclone risk areas. However, the report also highlights that premiums remain high for many households and small businesses, with affordability continuing to be a significant concern. - read more

IAG's Strategic Expansion: 90% Acquisition of RACQ Insurance

24 Mar 2026: Paige Estritori

Insurance Australia Group (IAG) has announced the acquisition of a 90% stake in RACQ Insurance for $855 million. This strategic move is expected to bolster IAG's gross written premiums by approximately $1.3 billion, reinforcing its position in the Australian insurance market. - read more

Suncorp's Impressive 89% Profit Increase in H1 2025

24 Mar 2026: Paige Estritori

Suncorp Group has reported a remarkable 89% increase in net profit for the first half of 2025, with earnings per share reaching A$86.56. This substantial growth reflects the company's strong performance in the Australian insurance sector. - read more

Click for more Insurance News