Extreme Weather Drives Soaring Insurance Costs Across Australia

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Extreme weather is hitting Australians hard. New research from the Insurance Council of Australia (ICA) shows insurers are paying an average of $4.5 billion annually in claims — three times more than 30 years ago.

This year alone, three major events caused nearly $2 billion in losses:

• North Queensland floods: $289 million

• Ex-Tropical Cyclone Alfred: $1.43 billion

• NSW Mid North Coast and Hunter floods: $248 million

Rising costs are linked to population growth in flood-prone areas and infrastructure not designed for climate change. Australia now ranks among the highest in the world for economic losses per person due to extreme weather.

The report also highlights a worrying social impact: of 242,000 homes at highest flood risk, 186,000 lack insurance. Most are owned by low-to-average income households, leaving the most vulnerable with little protection.

ICA CEO Andrew Hall warns that without more investment in resilient infrastructure, Australians will continue to bear a growing financial burden from extreme weather.

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