<
https://theconversation.com/australia-faces-a-home-insurance-reckoning-and-we-can-learn-from-californias-bold-move-263530>
"Climate change is making home insurance costlier and, for some, harder to
secure. According to one analysis, one in ten Australian properties will be
uninsurable within a decade.
Insurance is vital to help people recover after a disaster damages or destroys
their home – enabling them to replace personal belongings and rebuild their
homes and lives.
Historically, insurers have been required to determine risk – and set premiums
– according to losses from past disasters. It has meant insurers cannot account
for worsening climate-fuelled disasters, which are causing more damage to homes
and triggering more insurance payouts.
In response, insurers around the world have generally raised premiums to cover
their losses, excluded some risks from policies or withdrawn coverage from some
high-risk locations entirely.
California has just taken a novel approach to this problem. There, insurers are
now permitted to use forward-looking computer models of climate change and
disasters when setting premiums – as long as they expand coverage in
higher-risk areas.
Australia should explore this approach. It has the potential to keep home
insurance prices stable, ensure coverage in risky areas, and make homes safer
over time."
Cheers,
*** Xanni ***
--
mailto:xanni@xanadu.net Andrew Pam
http://xanadu.com.au/ Chief Scientist, Xanadu
https://glasswings.com.au/ Partner, Glass Wings
https://sericyb.com.au/ Manager, Serious Cybernetics
