A new report reveals that over 15 per cent of Australian households are now struggling to afford home insurance as premiums continue to rise.
The research conducted by the Actuaries Institute highlighted that the percentage of households spending more than a month’s income on home insurance has increased from 10 per cent in 2023 to 12 per cent in 2024, now to 15 per cent.
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Households paying the top five per cent of premiums have seen costs jump by more than 30 per cent.
Some insurance premiums averaged around A$5,216 ($3,505) annually—more than double the previous average of A$2,124.
Lead author Sharanjit Paddam said: “While insurance remains generally affordable for 85% of households, it’s concerning that there are now 1.6 million households struggling to insure their homes,”
In Australia, areas like Queensland, the Northern Territory, and New South Wales face the highest levels of affordability stress.
“We expect this trend to continue due to the rising risk of natural disasters associated with climate change.”
The report attributes the increase in premiums largely to higher risks from natural disasters such as floods and cyclones.
The organisation also urges collaboration among government, insurers, lenders, and investors to implement sustainable finance measures, such as resilience loans and bonds.
Elayne Grace, CEO of Actuaries Institute said:” We know as a country we need to manage the risks of the changing climate.”
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