Australians are no longer in favour of continuing to pay rising home insurance premium. They feel these increases only support those living in flood-prone areas. Instead, they want the government to fight floods with pre-emptive measures and block development in regions that have elevated risk of inundation.
A new research by insurance company Youi has revealed that the preferred option for supporting those in flood-risk areas via increased premium costs was to not subsidise them at all. The number one priority for managing flood risk across the country was to restrict development in flood zones, followed by improving flood defences and infrastructure.
The research surveyed more than 1200 persons across the country and the report identified more than two million Australian homes as being flood-prone. Among those willing to support people living in flood-risk areas, most topped out at A$300 ($206) being added to their own premiums.
Youi Chief Executive Nathaniel Simpson said it was important to note that the way insurance worked was that a wider pool of people meant minimised costs for as many people as possible, with even those insured and living in flood-risk areas also helping to off-set costs for storm risks in other areas.
He said, “The Australian spirit is generous and inclusive and we rally around each other, so that answer, in the context of the other answers … the message to me is that while we have the opportunity to direct what we can to solving the underlying problem, to do that rather than increasing premium costs,” Mr Simpson said.
“But while the risk remains, it will be paid by someone, and they don’t want to see that perpetuated and to instead see the underlying issue addressed, rather than having to spend more and more on clean up after the fact.”