Hospitality Insurance Online
Australia's leading Online Hospitality Insurance resource
A report released by the Actuaries Institute in August 2024 highlights how these ballooning premiums are outpacing income growth. According to the study led by Sharanjit Paddam, the median home insurance premium saw a 9% uptick over the past year. This surge has highlighted a growing concern for many families struggling to keep pace with rising costs.
Paddam pointed out several factors influencing these heightened insurance costs, with climate change being a significant contributor. The impact of climate change has been substantial, intensifying natural disasters and increasing the frequency of claims, he remarked. This scenario poses a multi-layered challenge, intertwining environmental change with economic repercussions.
Unlike some reports that focus solely on numbers, the Actuaries Institute's findings bring attention to the human element, emphasising the stories of ordinary Australians affected by these financial pressures. For example, a family in Queensland faced a burgeoning insurance bill following severe flooding, showcasing the direct link between extreme weather events and escalating premiums.
Comparatively, the situation sheds light on international trends, drawing parallels to similar challenges faced in flood-prone areas across the globe. As insurance markets globally confront the realities of climate change, Australian households now find themselves at a financial crossroads.
Peter Dutton, the leader of the opposition, has also addressed this escalating issue. He stated, "We need a comprehensive strategy to combat these exorbitant costs and provide relief to Australian families." Dutton's call for action echoes the growing sentiment among policymakers needing to address the problem at its root.
The urgency of this issue is prompting discussions around strategic interventions, including potential government action and policy reform aimed at mitigating the impacts of climate-related events on insurance costs.
The ongoing developments in the insurance sector serve as a reminder of the need for cohesive efforts to manage the repercussions of climate volatility, ensuring affordable and accessible insurance for all Australians. To delve deeper into this topic, insights into these economic dynamics can also be found in reports from the Actuaries Institute.
Published:Tuesday, 18th Feb 2025
Source: Paige Estritori
| Landmark Court Ruling Challenges Insurance Exclusion Clauses 19 Feb 2025: Paige Estritori An Australian court has rendered a pivotal decision in a complex insurance case featuring Mr R's Total and Permanent Disability (TPD) claim which was initially denied by the insurer due to a contested exclusion clause related to pre-existing conditions involving neck and shoulder injuries. - read more |
| Rising Insurance Premiums: A Looming Crisis for Australian Households 18 Feb 2025: Paige Estritori The insurance landscape in Australia is becoming increasingly fraught as the cost of home insurance continues to climb. Recent findings have shed light on the financial strain experienced by 1.6 million households due to surging insurance expenses. Alarmingly, this figure marks an increase of 360,000 households compared to the previous year, underscoring a 30% rise in those affected by these financial burdens. - read more |
| AFCA Backs Policyholder in Stolen Car Dispute 17 Feb 2025: Paige Estritori In a recent ruling, the Australian Financial Complaints Authority (AFCA) sided with a motor insurance policyholder, awarding her the full value of her stolen vehicle alongside $3000 for non-financial losses, dismissing the insurer's fraud accusations. - read more |
| Debate Heats Up Over Risk Commission Caps in Insurance 16 Feb 2025: Paige Estritori In light of recent discussions within Australia's financial sector, notable figures from both the Coalition and Labor are advocating for the removal of risk insurance commission caps. This policy adjustment could potentially reshape the landscape for life insurance advisers across the nation. - read more |
| Business Relief as Insurance Rates Decline Worldwide 11 Feb 2025: Paige Estritori In a new development that could signal relief for global businesses, the latest data from Marsh's commercial price monitor indicates a broad decline in insurance rates during the last quarter of 2025. This trend is especially marked in the Australia-Pacific region, which experienced an 8% reduction, making it the standout market globally. - read more |
| Strategies to Use Life Insurance in Funding Shareholder Agreements Shareholder agreements lay the cornerstone for stable business relationships and continuity in Australia. Acting as a contract among business owners, these agreements set forth the expectations, rights, and obligations of all parties involved. They are particularly vital in delineating clear paths for dispute resolution, succession planning, and the transfer of ownership shares under varied circumstances, including the untimely death or departure of a shareholder. - 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
|
| Insurance: The Absolute Basics Insurance has often been considered by many as a necessary evil. But for the majority of people, insurance offers real security, peace of mind and forms a fundamental platform for a more certain financial future. Understanding the basics of insurance and how it works will be enlightening for many. - read more
|
| The Essential Guide to Travel Insurance for Australians on a Working Holiday in Canada Welcome to your guide to embark on an amazing journey from Australia to the breathtaking landscapes of Canada on a working holiday. This adventure presents an inviting blend of work and travel, allowing you to immerse yourself fully in Canadian culture while supporting your explorations financially. - read more
|
| Mould-Damaged Contents: What Can Tenants Do to Get Compensated? Discovering mould in a rental property is a tenant’s worst nightmare. Apart from its unsightly appearance and musty smell, it can pose a significant health hazard to you and your family. And when that mould damage affects your personal belongings, the situation becomes even more problematic. - read more
|