Australia: One in 25 homes could be uninsurable by 2030
Source: Asia Insurance Review | Jun 2022
One in 25 Australian properties will be effectively uninsurable by 2030 due to rising risks of extreme weather and climate change according to a new analysis by the Climate Council of Australia.
A press release by the council said within Australia’s top 10 electorates, which are most at-risk of climate impacts, the number would rise to one in seven homes, as climate change fuels worse and more frequent disasters.
The new report is based on analysis of hundreds of millions of data points, which the council transformed into a new interactive climate-risk map.
Climate Council CEO Amanda McKenzie said, “Climate change is playing out in real time and many Australians now find it impossible to insure their homes and businesses. Pollution from coal, oil and gas must begin to plummet and we must scale up our renewable power so it meets the needs of all sectors of our economy.”
The analysis found that across all electorates in Australia, 3.6% of properties (520,944) or one in every 25 properties will be uninsurable by 2030. In addition, one in 10 (9%) of properties will reach the ‘medium risk’ classification by 2030, with annual average damage costs equalling 0.2% or more of the property replacement cost. A