Proactive Policy Needed to Financially Protect Households From Climate Disasters: IAG

‘The cycle of disaster recovery and rebuilding must be broken. Otherwise, insurance premiums will rise beyond the reach of many Australians,’ said IAG manager.

Cars drive through flood waters in Forbes, Australia, on Nov. 4, 2022. Brendon Thorne/Getty Images

One of Australia’s largest insurance companies has said insurance should not be seen as the only way to manage the financial risks of natural disasters amid a surge of households struggling to pay for home insurance.

During a recent Senate inquiry hearing, Christa Marjoribanks, the executive general manager of the Insurance Australia Group (IAG), said the government needed to implement “proactive measures” to address climate risks if it wanted to improve insurance affordability and availability.