The Insurance Council of Australia (ICA) and the National Insurance Brokers Association (NIBA) have acknowledged the findings of the Senate Select Committee’s report on the Impact of Climate Risk on Insurance Premiums and Availability, which examines rising insurance costs linked to climate change and policy measures to address affordability and access issues.
The report emphasised the increasing financial toll of climate-driven weather events, combined with development in high-risk regions, on insurance affordability and coverage availability. It also noted the growing gap in protection for communities facing heightened disaster risks.
The ICA has expressed support for several policy recommendations in the report, which aim to lower premiums while addressing the root causes of rising risks. These include:
The ICA highlighted its Insurance Catastrophe Resilience Report 2023-24, which revealed that insured losses from just four significant natural disasters last year amounted to $2.19 billion.
It also highlighted its “Climate Change Roadmap,” which guides insurers on reducing emissions across business operations, supply chains, and underwriting portfolios.
Commenting on the senate inquiry report into climate risk and insurance, ICA CEO Andrew Hall underscored the importance of a collaborative approach.
“The ICA and its members thank the committee for their work inquiring into this important issue,” he said. “We look forward to continuing our collaboration with all levels of government and broader stakeholders.”
He said that the report adds valuable insights into the links between climate risk and insurance costs, adding that achieving the right balance between managing affordability for customers and reducing future pressures on premiums will be critical.
NIBA has also welcomed the report’s focus on policies that enhance the industry’s transparency and resilience-building efforts.
It said that the proposed measures could strengthen community preparedness while addressing affordability pressures.
The association said it was committed to working with industry, governments, and other stakeholders to implement the report’s recommendations.
