Senate Probes Climate's Toll on Insurance Costs and Access

2

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
Source: Paige Estritori

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

Share this news item:

Insurance News

Clear

Steadfast Unveils Prevail: A New Era in High Net Worth and Farm Insurance

17 Jan 2026: Paige Estritori

In a significant development for the Australian insurance landscape, Steadfast has announced the launch of Prevail, a new specialist agency designed to cater to high net worth individuals and the farming sector. This initiative brings together three well-established underwriting agencies-Mansions, Dawes, and Argis-under a unified brand, aiming to provide comprehensive and tailored insurance solutions. - read more

Harland Green Launches Comprehensive All-Risk Insurance for Large-Scale Farms

17 Jan 2026: Paige Estritori

Harland Green, a newly established Lloyd's coverholder, has introduced an all-risk farm insurance package specifically designed for large commercial farming operations in Australia. This initiative aims to address the complex and evolving needs of the agricultural sector by offering comprehensive coverage that encompasses various aspects of farm operations. - read more

Allstate Underwriting and Mitsui Sumitomo Join Forces to Strengthen Farm Insurance Offerings

17 Jan 2026: Paige Estritori

Allstate Underwriting Agencies has announced a strategic partnership with Mitsui Sumitomo Insurance (MSI) to enhance its capacity in providing insurance solutions for medium, small, and hobby farms across Australia. This collaboration is set to bolster Allstate's presence in the farm pack market, offering tailored products that meet the specific needs of these farming segments. - read more

Envest Group's TLI Underwriting: A New Era for Large Truck Fleet Insurance

17 Jan 2026: Paige Estritori

Envest Group, a prominent entity in the insurance sector, has announced the launch of TLI Underwriting, a specialised heavy motor agency set to commence operations at the end of this month. This new venture is poised to cater specifically to the insurance needs of larger truck fleets, marking a significant expansion in Envest's service offerings. - read more

ICA's Strategic Plan to Combat Escalating Motor Insurance Costs

17 Jan 2026: Paige Estritori

The Insurance Council of Australia (ICA) has unveiled a comprehensive report titled 'Motor Insurance Policy Paper - A Roadmap for Reducing Rising Premiums,' addressing the significant 42% increase in comprehensive motor insurance premiums since 2019. This surge has brought the average annual premium to $1,052 in 2024, prompting the need for coordinated action to alleviate the financial burden on consumers. - read more

Click for more Insurance News