Liability Insurance :: News

Share this news item!

Rising Home Insurance Costs Heat Up Household Finances

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.

Recent data published by the Actuaries Institute indicates a surge in financial strain among Australian households brought about by climbing home insurance premiums.

Remarkably, a staggering 1.6 million households are now feeling the pressure, marking a 30% increase over the last year, equivalent to an additional 360,000 households.

Sharanjit Paddam, who spearheaded the report at the Actuaries Institute, highlights a troubling trend: home insurance premiums are outpacing wage growth. The median premium for home insurance has soared by 9% in just one year, squeezing household budgets tightly.

One significant driver of these rising premiums, according to Paddam, is the increasingly evident impact of climate change. Extreme weather events, such as devastating bushfires and severe floods, have heightened the risk associated with insuring homes, prompting insurers to hike their prices.

Some households are responding to these changes by searching for cost-saving measures, such as increasing their deductibles or shopping for cheaper coverage options. However, others find themselves forced to forgo home insurance altogether, exposing them to far greater financial risk in case of disaster.

This trend isn't confined to Australia alone. Similar patterns can be observed globally, where rising natural disasters are causing insurance costs to escalate, putting additional financial strain on families already grappling with stagnant income growth and increasing living expenses.

The Actuaries Institute’s findings underline the pressing need for a multifaceted approach to mitigate the impacts of rising insurance costs. This approach could include:

Investing in improved climate resilience strategies to minimize the damage from natural disasters.
Proposing policy reforms to balance the insurance markets and protect consumers.
Encouraging public-private partnerships to develop affordable insurance solutions.
Enhancing consumer awareness regarding available options and making informed decisions.

The issue underscores an essential challenge for policymakers, insurers, and consumers alike. On one end, there's an urgent need to adapt to the financial reality shaped by climate change, and on the other, ensuring that essential services remain accessible without unduly burdening household finances.

Published:Tuesday, 17th Sep 2024
Author: Paige Estritori

Please Note: We do not endorse any specific products or companies. Some content is sourced from third parties, including press releases, and may not be independently verified for accuracy or completeness.

Share this news item:

Rate this article

0 Comments

No comments yet. Be the first to share your thoughts.

Insurance News

Cyclone Pool Delivers Some Relief for High-Risk Strata Schemes

05 Jul 2026: Paige Estritori

The ACCC’s fifth and final insurance monitoring report has given strata committees in cyclone-exposed regions a clearer view of what the Cyclone Reinsurance Pool is-and is not-achieving. Released on 25 June 2026, the report found that the pool has helped reduce or moderate premiums for policyholders in higher cyclone-risk areas, including residential strata schemes. - read more

Strata Broker Review Raises Fresh Questions for Owners Corporations

04 Jul 2026: Paige Estritori

A fresh compliance review into strata insurance broking has intensified the sector’s focus on transparency, governance and the way owners corporations are supported through major insurance decisions. The National Insurance Brokers Association has responded by saying it will continue working with members and the code compliance committee after the review identified shortcomings in strata-related arrangements. - read more

Broker Conflict Findings: A Reminder for Home Service Operators

04 Jul 2026: Paige Estritori

Fresh scrutiny of broker conduct in the strata insurance market is a useful reminder for home service businesses that insurance advice should be transparent, documented and clearly aligned with the client’s interests. The National Insurance Brokers Association has responded to findings from the Insurance Brokers Code Compliance Committee after a review identified weaknesses in representative arrangements, remuneration disclosure, conflict management and oversight. - read more

New Insurance Code Draft Puts Claims Handling in Focus

04 Jul 2026: Paige Estritori

The Insurance Council of Australia has opened public consultation on a redrafted General Insurance Code of Practice, with feedback invited until 21 July 2026. The proposal is not yet final, but it is an important development for anyone who relies on insurance to keep a small business operating, including personal trainers, fitness instructors and studio owners. - read more

Click for more Insurance News

Business Insurance Articles

How to Assess Your Risk Exposure and Select the Right Indemnity Coverage

Professional indemnity insurance stands as a pivotal safeguard for Australian professionals navigating the intricacies of liability in their work life. This form of insurance is designed to protect professionals against legal costs and claims for damages arising from acts, omissions, or breaches of professional duty in the course of their practice. Whether it's due to an honest mistake or an unforeseen error, the ramifications of such professional oversights can be financially crippling. - read more

The Importance of Documentation in Public Liability Claims

Public liability insurance is an essential part of any business's risk management strategy, especially for those operating in Australia. It's designed to protect businesses when they're found legally responsible for injury or damage to third parties due to their operations. But what happens when you need to make a claim? That's where understanding the claims process becomes vital. - read more

Understanding Liability Insurance: A Must-Read for Australian Small Business Owners

Liability insurance is a form of insurance designed to offer protection against claims resulting from injuries and damage to people or property. It covers legal costs and any payouts for which the insured party would be responsible if found legally liable. Intended to protect against claims resulting from injuries and damage to other people or property, liability insurance is critical for small businesses as it shields them from potentially crippling legal expenses. - read more

How to Choose the Right Public Liability Insurance for Your Business

Public liability insurance is a key consideration for business owners in Australia. This type of insurance helps protect businesses against claims made by third parties for injuries or property damage. But what exactly does it do? In simple terms, public liability insurance covers legal costs and expenses, as well as any damages awarded, if your business is found liable for an incident. - read more

Start Here !

Knowledgebase

Whole Life Insurance:
A type of life insurance that provides coverage for the insured's entire lifetime, with a savings component that builds cash value.

This website is owned and operated by Clark Family Pty Ltd (ACN 010 281 008) as Trustee for the Clark Family Trust (ABN 35 957 893 714), 43 Larch Street Tallebudgera QLD 4228. Clark Family Pty Ltd is an Authorised Representative (AR 1298860) of Unique Group Broker Services Pty Ltd (AFSL 509434) for financial product referrals and an Authorised Credit Representative (ACR 401491) of Saccasan Pty Ltd (ACL 386297). Check our licensing details on the ASIC registers: Clark Family Pty Ltd ACR, Clark Family Pty Ltd AR, Saccasan Pty Ltd, Unique Group Broker Services.

IMPORTANT: We act solely as an introducer and refer enquiries to licensed third-party brokers, insurers, and lenders. We do not provide financial product advice or credit assistance. We may receive a fee or commission from these third parties in consideration for the referral. Before any action is taken to obtain a product or service referred to by this website, advice should be obtained (from either the third party to whom we refer you or from another qualified intermediary) as to the appropriateness of obtaining those products having regard to your objectives, financial situation and needs. Whilst we have our own process for validating the legitimacy of our referral partners, you should independently verify the credentials and licensing of any adviser or provider you engage. Visit the ASIC website for further information.