Farm Insurance NZ
Properties identified as high-risk are likely to encounter skyrocketing insurance costs, according to the report commissioned by the Climate Council. Karl Mallon, the founder of Climate Valuation, emphasized the immediacy of the threat posed by climate change, urging decision-makers to address the concerning statistics detailed in the research.
The climate group's modelling identifies 86 suburbs as "critical climate risk zones," wherein 80% to 100% of properties are at risk of becoming financially uninsurable if current trends persist.
The escalating risks and rising cost of insuring these properties underscore the broader financial repercussions of climate change on Australian communities. The Insurance Council of Australia (ICA) has noted that insurers have long cautioned about these escalating risks, tying rising insurance premiums to extreme weather events, which have resulted in $4.5 billion insured costs annually over the past five years. This marks a nearly 70% increase compared to the previous five-year period, with projected costs reaching $35 billion by 2050 if no mitigating actions are undertaken.
The report highlights the potential backlash on the economy if insurance becomes inaccessible, with valuable community resilience being the key to maintaining affordability and availability of coverage.
The ICA advocates for significant investments in resilience and mitigation, such as a proposed $30 billion investment in flood defenses. It also urges the removal of unfair state insurance taxes and the promotion of household resilience measures, which some insurers already incentivize through premium reductions.
Climate Valuation additionally suggests several measures including retrofitting homes, relocating properties in extreme cases, halting development in high-risk areas, and ensuring that new constructions are climate-resilient as per the National Construction Code adaptation. These steps, it argues, would not only protect communities but also relieve pressure on insurance premiums, delivering what they describe as a "double dividend."
The report calls for a comprehensive integration of "climate proofing" into national standards to prevent placing more Australians in harm's way and to foster the development of sustainable, resilient infrastructure.
Published:Thursday, 17th Apr 2025
Source: Paige Estritori
| Potential AI Errors: A Looming Challenge for Insurers 24 Apr 2025: Paige Estritori Industry experts are signaling a potential risk for underwriters due to claims arising from inaccuracies produced by artificial intelligence (AI), likening it to the 'silent cyber' phenomenon of the past. Clyde & Co partner, Darryl Smith, highlights the issue, emphasizing how AI inaccuracies could impact various insurance policies, sometimes without immediate detection. - read more |
| AFCA Supports RAA Insurance in Vehicle Location Dispute 24 Apr 2025: Paige Estritori An insurance dispute over the location of a vehicle culminated in the Australian Financial Complaints Authority (AFCA) backing RAA Insurance in their decision to deny a claim. The issue surrounded the policyholder's claim that her son’s car was stored in South Australia, while the vehicle was allegedly used and registered in Victoria. - read more |
| AFCA Sides with Homeowners in Landmark Insurance Dispute Over Property Cracks 22 Apr 2025: Paige Estritori Homeowners recently secured a favourable ruling against their insurer after a water leak led to significant structural damage. After large cracks emerged on their property, Youi initially denied the insurance claim, attributing the damage to pre-existing issues like earth movement and tree root intrusion, both of which are exclusions in their policy. - read more |
| Climate Change Threatens Australian Suburbs with Unaffordable Insurance 17 Apr 2025: Paige Estritori More than 4% of Australian properties are currently facing heightened risks from natural hazards exacerbated by climate change, rendering insurance coverage often unaffordable or unavailable, according to recent findings by Climate Valuation. An analysis of over 15 million properties across 15,000 suburbs also highlights that an additional 10% are at moderate risk from disasters such as floods, bushfires, tropical cyclones, coastal inundation, and extreme winds. - read more |
| Insurer Rejects Claim Over Diesel Fluid Mix-Up 16 Apr 2025: Paige Estritori A contentious insurance claim has ended unfavourably for a motor policyholder after her husband mistakenly poured diesel exhaust fluid into her car's fuel tank. Although the policyholder initially received assurances from a Suncorp representative that the use of AdBlue fluid wouldn't be considered improper fuelling – supposedly an excluded scenario under her policy – the claim was later denied. This decision has sparked debate around policy definitions and customer service communication. - read more |
| ASIC Takes Hollard Insurance to Court Over Significant Claim Handling Issues 14 Apr 2025: Paige Estritori The Australian Securities and Investments Commission (ASIC) has initiated legal proceedings in the Federal Court against Hollard Insurance, alleging a breach of the duty of utmost good faith. This action is in response to what ASIC describes as Hollard's 'egregious' handling of a home and contents insurance claim filed by a couple from regional Victoria. - read more |
| Customizing Your Farm Insurance: Tailoring Policies to Fit Unique Agricultural Needs Those who work the land know that every farm has its own heartbeat - its unique rhythm defined by the crops it yields, the livestock it nurtures, and the natural environment it exists within. Recognizing this individuality is crucial, especially when it comes to safeguarding your agricultural investment with the right insurance policy. - read more
|
| Securing Your Farm's Future: Top Estate Planning Tips for New Zealand Farmers New Zealand's farming community forms the backbone of its thriving agricultural sector, yet many overlook the critical importance of proactive estate planning. With farmland often being held within families for generations, securing its future is not just a financial concern, but a deeply personal one as well. - read more
|
| Protecting Your Farming Future: Why Machinery Breakdown Coverage is Essential Farming is a vital part of New Zealand's economy and cultural heritage, representing a way of life for thousands across the country. With its unique landscapes and diverse climate, New Zealand farmers are renowned for producing a wide array of high-quality products that serve not only the nation's needs but also supply a multitude of international markets. - read more
|
| Natural Disaster Preparedness: Insurance Tips for Farmers Facing Adversity In the heart of New Zealand's pastoral verdure, the significance of preparedness for natural disasters is paramount for the farming industry. The distinct landscape, while providing an idyllic backdrop for agricultural pursuits, is not without its challenges. Farmers are often at the mercy of nature's unpredictability, making disaster preparedness not just prudent but essential for the continuity of their livelihood. - read more
|
| When the Rain Doesn't Come: Financial Planning Tips for Persistent Drought For farmers across rural Australia, the unyielding dry spells brought on by persistent drought conditions are not just an environmental concern but a significant financial challenge. Effective financial planning becomes a cornerstone strategy for ensuring the resilience and longevity of these crucial agricultural businesses. The prickling heat and parched earth serve as stark reminders of nature's capacity to impact livelihoods, especially when the rain doesn't grace the farmlands for extended periods. - read more
|
| Safeguarding Your Harvest: The Importance of Crop Insurance In the ever-unpredictable world of farming, crop insurance emerges as a pivotal ally for farmers, hedging against the myriad of risks that come with cultivating the land. As the first step to understanding this crucial safeguard, let's unfold the question: What is crop insurance, exactly? In essence, crop insurance is a type of cover designed to cushion farmers from financial losses due to unavoidable circumstances such as adverse weather conditions, pests, disease, or even market fluctuations. - read more
|
|
|
Customizing Your Farm Insurance: Tailoring Policies to Fit Unique Agricultural Needs Those who work the land know that every farm has its own heartbeat - its unique rhythm defined by the crops it yields, the livestock it nurtures, and the natural environment it exists within. Recognizing this individuality is crucial, especially when it comes to safeguarding your agricultural investment with the right insurance policy. - read more
|
|
|
Natural Disaster Preparedness: Insurance Tips for Farmers Facing Adversity In the heart of New Zealand's pastoral verdure, the significance of preparedness for natural disasters is paramount for the farming industry. The distinct landscape, while providing an idyllic backdrop for agricultural pursuits, is not without its challenges. Farmers are often at the mercy of nature's unpredictability, making disaster preparedness not just prudent but essential for the continuity of their livelihood. - read more
|
|
|
Protecting Your Farming Future: Why Machinery Breakdown Coverage is Essential Farming is a vital part of New Zealand's economy and cultural heritage, representing a way of life for thousands across the country. With its unique landscapes and diverse climate, New Zealand farmers are renowned for producing a wide array of high-quality products that serve not only the nation's needs but also supply a multitude of international markets. - read more
|