Australian insurance companies are becoming leery of insuring high risk properties.
Climate change disasters could scare off the Australian home insurance industry
“The idea of parts of Australia being so exposed to natural disasters that they aren’t able to get home insurance seems scary but that’s exactly what insurers are warning of as climate change boosts the frequency of extreme weather events.”
Dramatic hikes in insurance premiums combined with tighter lending in response to climate risk could trigger a wider property market correction, according to leading climate risk analyst Karl Mallon.
The warning comes as new analysis from his firm Climate Risk shows the number of “uninsurable” addresses in Australia is projected to double by the turn of the century to nearly 720,000 — or one in 20 — if nothing is done to address escalating risk from extreme weather and climate change.
Thousands more will see their insurance premiums double or even triple within decades, the data reveals.