New analysis from KPMG shows home insurance premiums rose 14 per cent in the year to June, in a further blow to Australians dealing with the soaring cost of living.
Motor insurance was also up 14.5 per cent over the same period, with both types of cover more than two per cent higher compared to the 12 months through to March this year.
The news comes as households are struggling to deal with the effects of the fastest increase in interest rates ever seen in Australia and a slowing economy where savings levels have hit a 15-year low.
KPMG insurance partner Scott Guse explained the increasing frequency of severe weather events, such as bushfires and floods, was creating significantly more claims for insurers and pushing up premiums as a result.
Claims for the March quarter totalled $91.7 billion, the data showed, up 36.5 per cent from the same period in 2022.
The May 2023 Newcastle hailstorm, Central West New South Wales floods in November 2022, Victoria, NSW and Tasmania floods in October 2022, NSW floods in July 2022, and Queensland and NSW floods from February to April 2022 were responsible for the massive increase.
Inflation and the rising cost of reinsurance – insurance that companies take out with other insurers to mitigate the effects of massive claims events such as natural disasters – were the other major factors pushing up prices.
According to Mr Guse, that meant insurers had also taken a considerable hit alongside households over the past 18 months.
“Insurance premiums continue to rise inexorably, even in the three months since our previous review,” he said.
(Sky News)
