Impact of Climate Risk on Insurance Premiums and Availability

OCN made a detailed submission to the Senate Inquiry into the impact of climate risk on insurance availability and affordability, focusing on the undetected concentration of the strata insurance sector.

We propose that the climate change narrative has masked an escalation in intermediary fees, commissions and profits.

The compulsory aspect of strata insurance means it could be considered a form of state insurance, like motor liability or workers compensation, but states have shown no inclination to intervene in any significant way in the operation of the market.

There has long been a reluctance at the federal level to take explicit ownership of strata insurance regulation despite this unique feature. Strata is one of Australia’s largest and fastest growing asset classes, but APRA does not have a definitive position on strata insurance solvency requirements, instead aggregating it with home insurance and other lines such as travel insurance, small business and industrial special risks.

Read OCN Submission:> OCN Submission – Impact of Climate Risk on Insurance Premiums & Availability June 2024

Read Submission Addendum #1:> OCN Submission Addendum – Impact of Climate Risk on Insurance Premiums & Availability September 2024

Read Submission Addendum #2:> OCN Submission Addendum 2 – Impact of Climate Risk on Insurance Premiums & Availability December 2024