Health Insurance Online :: News

Share this news item!

Rising Home Insurance Costs Heat Up Household Finances

The information on this website is general in nature and does not take into account your objectives, financial situation, or needs. Consider seeking personal advice from a licensed adviser before acting on any information.

Recent data published by the Actuaries Institute indicates a surge in financial strain among Australian households brought about by climbing home insurance premiums.

Remarkably, a staggering 1.6 million households are now feeling the pressure, marking a 30% increase over the last year, equivalent to an additional 360,000 households.

Sharanjit Paddam, who spearheaded the report at the Actuaries Institute, highlights a troubling trend: home insurance premiums are outpacing wage growth. The median premium for home insurance has soared by 9% in just one year, squeezing household budgets tightly.

One significant driver of these rising premiums, according to Paddam, is the increasingly evident impact of climate change. Extreme weather events, such as devastating bushfires and severe floods, have heightened the risk associated with insuring homes, prompting insurers to hike their prices.

Some households are responding to these changes by searching for cost-saving measures, such as increasing their deductibles or shopping for cheaper coverage options. However, others find themselves forced to forgo home insurance altogether, exposing them to far greater financial risk in case of disaster.

This trend isn't confined to Australia alone. Similar patterns can be observed globally, where rising natural disasters are causing insurance costs to escalate, putting additional financial strain on families already grappling with stagnant income growth and increasing living expenses.

The Actuaries Institute’s findings underline the pressing need for a multifaceted approach to mitigate the impacts of rising insurance costs. This approach could include:

Investing in improved climate resilience strategies to minimize the damage from natural disasters.
Proposing policy reforms to balance the insurance markets and protect consumers.
Encouraging public-private partnerships to develop affordable insurance solutions.
Enhancing consumer awareness regarding available options and making informed decisions.

The issue underscores an essential challenge for policymakers, insurers, and consumers alike. On one end, there's an urgent need to adapt to the financial reality shaped by climate change, and on the other, ensuring that essential services remain accessible without unduly burdening household finances.

Published:Tuesday, 17th Sep 2024
Source: Paige Estritori

Please Note: If this information affects you, seek advice from a licensed professional.

Share this news item:

Insurance News

Marinex Underwriting Sets Sail in Australian Marine Insurance Market

27 Jan 2026: Paige Estritori

In a significant development for Australia's marine insurance sector, Rhodian Group has announced the launch of Marinex Underwriting, a new agency dedicated to providing specialised marine insurance products tailored to the Australian market. This initiative marks Rhodian's third agency launch, following the establishment of Halo Underwriting and Batch Underwriting in previous years. - read more

Club Marine Marks 65 Years of Leadership in Australian Boating Insurance

27 Jan 2026: Paige Estritori

Club Marine, Australia's largest recreational boat insurer, is celebrating its 65th anniversary in 2024. Since its founding in 1959 as Marine Hull & Liability, the company has grown from a small operation in Victoria to a nationwide provider of insurance services for the country's boating community. - read more

Northern Australian Marinas Struggle with Rising Insurance Costs

27 Jan 2026: Paige Estritori

Marina operators in Northern Australia are confronting a significant crisis as insurance premiums escalate dramatically, with some experiencing increases exceeding 300% over recent years. This surge in costs is placing immense financial strain on the industry, prompting urgent calls for government intervention. - read more

Surge in Mental Health Claims Reshapes Australia's Life Insurance Landscape

26 Jan 2026: Paige Estritori

Australia's life insurance sector is witnessing a significant transformation, with mental health conditions emerging as the predominant cause of Total and Permanent Disability (TPD) claims. Recent data from the Council of Australian Life Insurers (CALI) indicates that mental health-related TPD claims now constitute nearly one-third of all such claims, highlighting a profound shift in the factors leading Australians to exit the workforce permanently. - read more

Australian Life Insurers Report Significant Profit Growth in FY25

26 Jan 2026: Paige Estritori

The Australian life insurance industry has reported a remarkable financial turnaround in the fiscal year 2025, with earnings more than doubling to $360 million, according to the latest figures from the Australian Prudential Regulation Authority (APRA). This 210% increase in profit after income tax marks a significant recovery from previous years' losses and underscores the sector's resilience and adaptability. - read more

Click for more Insurance News

Health Insurance Articles

Keeping Your Family Protected: The Importance of Adequate Health Insurance Coverage

The modern Australian family faces a dynamic and ever-evolving set of health needs, with access to quality healthcare remaining a cornerstone of managing our wellbeing. As these needs shift through the different stages of life, the assurance of having a safety net in place can provide unparalleled peace of mind. It's this sense of security that makes adequate health insurance coverage indispensable in today's fast-paced society. - read more

The Ultimate Guide to Comparing Health Insurance Plans in Australia

Australia is renowned for its iconic landmarks, diverse ecosystems, and robust healthcare system. While the public healthcare system, Medicare, provides essential health services, it might not cover everything. The allure of private health coverage lies in its promise of broader options, reduced wait times, and coverage for services not included in Medicare, like dental and optical care. - read more

Understanding Health Insurance: A Starter's Guide for Young Australians

Embarking on the journey of understanding health insurance is a pivotal stride for young Australians. It's a proactive step that embodies responsibility for one's well-being and financial foresight. Health insurance can often seem like a complex affair reserved for a future self, but grappling with its intricacies early can be both economically savvy and health-conscious. - read more

The Benefits of Private Health Insurance for Families: Is It Worth the Cost?

Health insurance is a crucial aspect of financial planning for individuals and families alike. It provides protection against unexpected medical costs and ensures that you have access to necessary healthcare services when you need them most. - read more

Top 10 Tips to Find Affordable Health Insurance in Australia

Finding affordable health insurance can be a daunting task, particularly in a landscape as diverse as Australia’s. With a myriad of options available, it's crucial to understand the financial support mechanisms in place that can ease the burden of healthcare costs. One such mechanism is the health fund rebate, a key feature of the Australian health insurance system designed to make healthcare more accessible. - read more

Knowledgebase

Depreciation:
The reduction in the value of an asset over time, used in insurance to calculate the actual cash value of property.

This website is owned and operated by Clark Family Pty Ltd (ACN 010 281 008) as Trustee for the Clark Family Trust (ABN 35 957 893 714), 43 Larch Street Tallebudgera QLD 4228. Clark Family Pty Ltd is an Authorised Representative (AR 1298860) of Unique Group Broker Services Pty Ltd (AFSL 509434) for financial product referrals and an Authorised Credit Representative (ACR 401491) of Saccasan Pty Ltd (ACL 386297). Check our licensing details on the ASIC registers: Clark Family Pty Ltd ACR, Clark Family Pty Ltd AR, Saccasan Pty Ltd, Unique Group Broker Services.

IMPORTANT: We do not provide financial product advice or credit assistance. We act solely as an introducer and refer enquiries to licensed third-party intermediaries, insurers, and lenders - with whom you can then deal directly. We may receive a fee or commission from these third parties in consideration for the referral. Before any action is taken to obtain a product or service referred to by this website, advice should be obtained (from either the third party to whom we refer you or from another qualified intermediary) as to the appropriateness of obtaining those products having regard to your objectives, financial situation and needs. Whilst we have our own process for validating the legitimacy of our referral partners, you should always verify the credentials of your financial adviser before proceeding with recommendations that they may present. Visit the ASIC website for further information.