Impact of climate risk on insurance premiums and availability

Productivity Commission submission

15 July 2024

The Commission made a submission to the Senate Select Committee on the Impact of Climate Risk on Insurance Premiums and Availability inquiry.

This submission makes three key points:

Managing natural disaster risks is a shared responsibility between households, businesses, community and government.
Insurance is one tool available to households and businesses to manage the risks they face.
Government interventions to reduce the price of insurance without reducing the underlying risks reduces the incentives for households and businesses to manage their risks.

The submission also identifies some measures that governments could enact to reduce the price of insurance.

The Commission provided the submission to the Committee on 5 July 2024 and it was published on the Commission's website on 15 July 2024.

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