WeekendTimes.com.au



Men's Weekly

.

Home insurance bills are soaring as climate risks grow. The government should step in

  • Written by Paula Jarzabkowski, Professor in Strategic Management, The University of Queensland
Home insurance bills are soaring as climate risks grow. The government should step in

The Actuaries Institute of Austalia[1] has just confirmed what many Australian households already know – home insurance is increasingly unaffordable.

It found average premiums climbed 28% in the year to March, while premiums for higher-risk properties, such as those in flood-prone areas, climbed 50%.

The institute also found 12% of Australian households – 1.24 million – are experiencing extreme home insurance affordability stress, defined as paying more than four weeks of gross household income on premiums.

Twelve months ago, this figure was 10%, or 1 million households.

Actuaries Institute of Australia[2] While in the past affordability had been recognised as a problem affecting vulnerable Australians, it has got to the point where it is hitting households across the socio-economic spectrum. And not only in Australia. Insurers are increasing premiums in locations at high risk of climate-related damage throughout the world and even withdrawing home insurance completely in places such as California and Florida. The high premiums are spreading to households in lower-risk locations through a complex interconnected system of rising private reinsurance[3] charges (insurance for insurers), more frequent and worse weather events, and increasing rebuilding costs. The case for a government-owned reinsurance pool The Actuaries Institute put forward risk pooling[4] as an emergency solution. It would work through a government-owned and run “reinsurance pool”, providing nationwide coverage for claims relating to extreme weather events. Private insurers would pass on their risk to the state-owned pool, which would use the pooled premiums to ensure every insurer was covered. In the past, the insurance industry has been overwhelmingly opposed to the idea, viewing it as interfering in a traditionally private market. As recently as March 2022, as Queensland and NSW reeled in the aftermath of catastrophic flooding and its implications for insurance[5], the Insurance Council of Australia responded to calls to extend the newly created cyclone reinsurance pool[6] by saying the private sector did things better[7]. The industry’s concerns are not totally unfounded. Setting up a risk pool without taking steps to mitigate the underlying risk would simply mask, or even exacerbate, the problem. It could facilitate insurance and rebuilding in high-risk areas that will suffer repeated losses. Risk pools have to include mechanisms that tie insurability to long-term risk reduction through mitigation, updated planning and building regulations, and disaster-resilient rebuilding programs, informed by nationwide data collection. Read more: Victims of NSW and Queensland floods have lodged 60,000 claims, but too many are underinsured. Here's a better way[8] Governments are stepping in elsewhere Extreme weather risk pools work in advanced economies around the world. Some, such as the United States’ National Flood Insurance Program[9], mask risk while allowing rebuilding in disaster-prone areas. But others, such as those in Spain[10], France[11] and Switzerland[12], integrate risk pooling with risk reduction. Australia would need to draw on the experience of the countries that do it well, doing everything we can to reduce underlying risk, including by changing where and how we build, and relocating people from disaster-prone areas. Read more: After the floods comes underinsurance: we need a better plan[13] If we don’t do something along the lines of government-provided and mandated reinsurance, insurance and its enormous benefits will no longer be available to an increasing share of Australians, regardless of their financial means. The inclusion[14] of the idea in the Actuaries Institute report might be an indication that opposition is softening. The future of home insurance could depend on it. References^ Actuaries Institute of Austalia (www.actuaries.asn.au)^ Actuaries Institute of Australia (www.actuaries.asn.au)^ reinsurance (www.ft.com)^ risk pooling (www.actuaries.asn.au)^ implications for insurance (www.afr.com)^ cyclone reinsurance pool (treasury.gov.au)^ did things better (www.insurancenews.com.au)^ Victims of NSW and Queensland floods have lodged 60,000 claims, but too many are underinsured. Here's a better way (theconversation.com)^ National Flood Insurance Program (cup.columbia.edu)^ Spain (fdslive.oup.com)^ France (www.ccr.fr)^ Switzerland (www.vkg.ch)^ After the floods comes underinsurance: we need a better plan (theconversation.com)^ inclusion (www.actuaries.asn.au)Authors: Paula Jarzabkowski, Professor in Strategic Management, The University of Queensland

Read more https://theconversation.com/home-insurance-bills-are-soaring-as-climate-risks-grow-the-government-should-step-in-211515

The Weekend Times Magazine

Planting The Seed To Health Living Top tips on planting for wellbeing

With the family home full time and a need to keep everyone busy, it is the ideal time to plant a seed to a healthier lifestyle. Tuscan Path Product Manager...

Airbnb bans party houses

PARTY HOUSE BAN BY AIRBNB WELCOMED BY STRATA SECTOR A decision by Airbnb to ban so called party houses has been applauded by the strata sector in New South Wales and...

The Psychology of Your Floor Plan: How Layout Shapes the Way You Live

When most people think about designing a new home, they focus on finishes, colours, or even the kitchen benchtop. But the quiet hero of liveability is the floor plan. A...

How to Care for Your Dental Veneers: Tips from Experts

Dental veneers are a popular cosmetic dentistry solution that enhances smiles by covering imperfections such as discoloration, chips, or gaps. Among the different types available, porcelain veneers stand out for...

A Fantastic Trip To Melbourne, Australia With Minimal Spending? Here’s How?

Famed for the iconic Melbourne cup horse race, Melbourne, Australia ranks as one of the best travel destinations worldwide. It offers tourists an escape from the hustle and bustle of...

Why Lighting Stores Perth Are the Key to Brightening Homes and Businesses

The right lighting can transform a room from dull to dynamic, highlight architectural details, and create an inviting environment for living, working, or entertaining. For those in Western Australia, visiting...

Camplify Research Reveals 2020 is the Year of the Local Road Trip

Camplify has today released a research report highlighting that 2020 is no doubt the year of the local road trip. With COVID-19 restricting international travel, Australians have hit the roads...

5 Ways to Make Maths Fun

For many students, maths can seem like a daunting subject, but with the right approach, it can become one of the most enjoyable and rewarding parts of learning. Whether you’re...

Dark Mode Emails: How to Design for Visibility and Impact

Image by DC Studio on Freepik With dark mode rolling out on various devices and email service providers, the need for emails to render correctly and legibly is vital. Dark mode...

hacklink hack forum hacklink film izle hacklink หวยออนไลน์mavibetPusulabetสล็อตเว็บตรงgamdom girişpadişahbetMostbetcarros usadoskn777pradabetcocktail glassestipobetjojobetcasibomjojobet girişjojobet girişbetofficetipobet girişpusulabetholiganbet色情 film izlejojobetYakabet1xbet girişjojobetGrandpashabetgobahiskingroyaljojobetultrabet girişzbahisbets10palacebetmamibetmadridbetcasibomkingroyalbetciougwin288iptvcasibomcasibomJojobetkingroyalmadridbetcasibomdeneme bonusumeritkingSekabetCasibommadridbetsekabetDinamobetrinabetVdcasinobetpuanMarsbahisultrabet girişprimebahismeritking girişprimebahismeritkingholiganbetcasibombetnanoaresbetSahabetmr pachocasibomcasibomvbettipobet girişmeritbet girişkralbet girişultrabet girişultrabet girişcasibomdeneme bonusu veren siteleronwinonwintimebetkonya escorthttps://bogaria-atelier.com/grandbettinggrandbettinggrandbettingbets10 girişbets10 güncel girişultrabetbets10matbet güncel girişnorabahisKayseri Escortjojobet girişbettiltcasibomPadişahbetaviator gamebahislioncasibomcasibomcrown155 casinohb88aussuper96 loginholiganbetpadişahbet주소모음 주소모아spin2u loginneoaus96 casino loginPadişahbetStreameastholiganbetpadişahbetbetasusbets10ff29 casinobets10best e-wallet pokies 2025matbetmatbetgrandpashabetjojobet giriş