This paper was prepared by the General Insurance Affordability Working Group on behalf of the Institute.
Households in up to 12% of Australian postcodes may face pressure meeting annual home insurance premiums, a figure which represents around 7% of Australia’s population, according to the Research Paper.
This affordability pressure can give rise to households having a ‘protection gap’, where inadequate or no insurance is held.
That gap is concerning for individuals, communities, governments (taxpayers) and charitable organisations because they are all called upon to bridge the gap in times of loss.
Policymakers are looking for better ways ahead, as evidenced by the Australian Competition and Consumer Commission inquiry and the Royal Commission into natural disasters. State of the Climate 2020, a CSIRO and Bureau of Meteorology report released earlier this month, adds a further contextual imperative.
The Paper aims to help policymakers better understand affordability issues and considerations with potential solutions.