A report by the Australian Bureau of Statistics (ABS) has said that insurance premiums have surged by an average of 11% over the past 12 months. It was just about a year ago that a devastating storm tore through Victoria's Gippsland region.
According to news reports some residential properties in the region have seen their insurance premium surge by as much as 250% in the last 12 months. Insurance customers have said now it is a choice of putting food on the table or paying for the insurance.
A press release by ABS said, “Insurance prices rose 11.0% in the 12 months to November 2024, softer than the 14.0% rise in the 12 months to October 2024. Higher reinsurance, natural disaster and claims costs continue to contribute to higher premiums for house, motor vehicle and home contents insurance over the past 12 months.
The release said, “In monthly terms, insurance rose 1.1%, with easing reinsurance and replacement and repair costs in recent months contributing to a moderation in insurance premium price growth across all policy types.
Experts and industry watchers have said that premiums will only continue to rise, with millions of homes under threat of natural disasters like bushfires and floods. Australian Council of Social Service chief executive Cassandra Goldie told media personnel, "Home and contents insurance was the first essential item people stopped paying for when things get tough."
Press reports say pressure is building on the federal government to step in before the upcoming election after a senate inquiry late last year made a number of recommendations for the Australian Competition and Consumer Commission to monitor prices and push premiums down.
Insurance Council of Australia executive director Andrew Hall recommended shopping around for a better insurance deal. Mr Hall suggested that homeowners should reach out to their insurer to enquire about payment plans and consider increasing their excess in order to reduce their premiums.
The Australian Bureau of Meteorology has predicted an increased risk of extreme events in the country during this summer, with storms and flash flooding already hitting parts of the Brisbane and surrounds.
Extreme weather can strike at any time; however, insurers see a greater number of events between October and April. Since 2013, 78% of all declared insurance catastrophes have taken place between October and April and 90% of catastrophe-related losses have been incurred in those months.
Source: asiainsurancereview.com
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