World

Aussie homeowners face rising insurance costs due to climate risks

Aug 26, 2024

Sydney [Australia], August 26: Home insurance is becoming unaffordable for a growing number of Australian households as increased climate threats drive up their premiums, potentially putting billions of dollars in mortgage loans at risk, a report said.
As of March 2024, 15% of Australian households were experiencing home insurance affordability stress, which is defined as having premiums that cost more than four weeks' of their incomes, the report from the Actuaries Institute found.
That is equivalent to 1.61 million households, compared to 1.24 million found to be facing affordability stress a year ago - an increase of 30%.
Rising insurance costs have fuelled inflation in Australia and there are signs that some homeowners can no longer afford to protect their homes due to climate-related risks and high construction costs.
The report estimated that 5% of Australian households with home loans were experiencing extreme pressures, with their insurance premiums averaging A$5,216 ($3,505) a year, more than double the average of A$2,124.
Those households facing the most extreme affordability stress have about A$57 billion in outstanding mortgage loans as of March, representing 3% of all home loan assets, it said.
The report estimated that due to heightened risks of floods and cyclones, half of households in southwestern Queensland, the Northern Rivers region of New South Wales and regional Western Australia faced premiums that cost more than one month's income.
Source: Fijian Broadcasting Cooperation

More news

Hexaware and Abluva Join Forces to Deliver Secure Agentic AI Solutions for the Life Sciences Industry

Mumbai (Maharashtra) [India]/ Iselin (New Jersey) [US], July 10: Hexaware Technologies, a global provider of IT services and solutions, today announced a strategic partnership with Abluva, an innovator in agentic AI security, to address security challenges posed by autonomous AI agents in the Life Sciences industry. This collaboration brings together Hexaware's deep domain expertise and Abluva's groundbreaking Secure Intelligence Plane to help organizations in the sector deploy generative AI (GenAI) safely and in compliance with industry regulations. As Life Sciences organizations increasingly adopt agentic AI to enhance research, clinical trials, patient data management, and commercial operations, the partnership ensures that AI agents operate in a secure, governed, and auditable environment--without hindering innovation. Delivering Governed and Secure Generative AI Agents for Life Sciences Innovation.

Jul 10, 2025