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

TAL's Health Sense Plus Now Covers Income Protection Policies

19 Jan 2026: Paige Estritori

In a significant development for policyholders, TAL has expanded its Health Sense Plus program to encompass income protection (IP) policies. This initiative, effective from August 8, 2025, aims to incentivise proactive health management by offering premium discounts to clients who engage in preventative health checks. - read more

New Legislation Prohibits Life Insurers from Using Genetic Test Results

19 Jan 2026: Paige Estritori

The Australian government has enacted legislation prohibiting life insurers from using the results of genetic tests to refuse coverage or increase premiums. This landmark decision aims to eliminate genetic discrimination and encourage individuals to undergo potentially life-saving genetic testing without fear of financial repercussions. - read more

Markel Insurance Expands into Australian Marine Market with New Leadership

19 Jan 2026: Paige Estritori

Markel Insurance has announced the appointment of Tim Wills as Head of Marine for Australia, marking a significant expansion into the country's marine insurance sector. Based in Sydney, Wills will spearhead the introduction of Markel's marine products, starting with marine cargo insurance. - read more

Pelagic Risk Services Strengthens Marina Support with Gold Sponsorship

19 Jan 2026: Paige Estritori

Pelagic Risk Services, a specialist marine insurance broker, has elevated its commitment to the marina industry by upgrading from Silver to Gold Sponsorship with the Marina Industries Association (MIA). This move underscores Pelagic's dedication to supporting marinas across Australia through enhanced financial contributions and the provision of exclusive risk management resources. - read more

Marinex Underwriting Enters Australian Market with Specialised Marine Insurance Solutions

19 Jan 2026: Paige Estritori

Rhodian Group has announced the launch of Marinex Underwriting, a new agency dedicated to providing specialised marine insurance products tailored to the Australian market. This initiative marks Rhodian's third agency launch, following the establishment of Halo Underwriting and Batch Underwriting in previous years. - read more

Click for more Insurance News