APRA Calls for Immediate Action on Extreme Weather Risks
APRA Calls for Immediate Action on Extreme Weather Risks
0
The Australian Prudential Regulation Authority (APRA) has released a landmark report emphasising the urgent need for ambitious action and investment to shield communities from the escalating impacts of extreme weather events.
The Insurance Climate Vulnerability Assessment (ICVA) serves as a stress test, highlighting risks that are already materialising and supporting the insurance industry's calls for immediate mitigation efforts.
Worsening extreme weather, combined with inflationary pressures, rising asset values, and insurance taxes, is widening the gap between those who can and cannot access insurance in high-risk areas. Although the number of properties currently impacted by severe and extreme risk is relatively low, the cost of repairing and rebuilding these properties is significant. For instance, analysis by Aon indicates that 25% of the cost of repairing or rebuilding properties damaged by floods is driven by just 11% of the most at-risk properties.
The report underscores the necessity for collaborative efforts between the government, insurance industry, and communities to implement effective mitigation strategies. This includes investing in resilient infrastructure, updating building codes, and enhancing emergency response capabilities. Such proactive measures are essential to reduce the financial and social impacts of extreme weather events on Australian communities.
AustralianSuper, one of Australia's largest superannuation funds, has announced a significant change to its default income protection insurance. Effective from 28 February 2026, the fund will reduce the default income protection cover to $1,000 per month. This adjustment aims to align insurance coverage with members' actual income levels and prevent over-insurance, which can erode retirement savings. - read more
CareSuper has announced an enhancement to its income protection insurance offerings. Starting 1 April 2026, members can apply for income protection cover up to 87% of their current income, including up to 12% super contributions. This is an increase from the previous limit of 85% of income, which included up to 10% super contributions. - read more
The Australian Prudential Regulation Authority (APRA) has recently mandated an additional capital requirement of $2 million for Sovereign Insurance Australia Pty Ltd. This directive is part of APRA's ongoing efforts to bolster the financial stability and resilience of insurers operating within Australia. - read more
The Australian Prudential Regulation Authority (APRA) has granted a new general insurance licence to Europ Assistance Australia, marking the company's official entry into the Australian insurance market. This development introduces additional competition and diversity within the sector. - read more
The Australian Prudential Regulation Authority (APRA) has released a landmark report emphasising the urgent need for ambitious action and investment to shield communities from the escalating impacts of extreme weather events. The Insurance Climate Vulnerability Assessment (ICVA) serves as a stress test, highlighting risks that are already materialising and supporting the insurance industry's calls for immediate mitigation efforts. - read more
Life insurance is a contract between an individual and an insurance company. The insurer promises to pay a designated beneficiary a sum of money upon the death of the insured person. - read more
Financial security for families is an essential consideration in any household. Life can be unpredictable, and ensuring that your loved ones are protected from financial hardship in your absence is a critical part of financial planning. - read more
When considering life insurance, you're planning and preparing for an event that most of us would rather not think about. But life insurance represents a critical step in managing your personal finances and ensuring your family's well-being. - read more
When life throws unexpected challenges your way, being financially prepared can make all the difference. This is where Income Protection Insurance and Total Permanent Disability (TPD) Insurance come into play. These two types of insurance provide a crucial safety net, ensuring that you and your family remain financially stable even when you're unable to work due to illness or injury. - read more
If you are like most people on this planet, you are not financially free. You would not be able to stop working and still support yourself and your family from your financial resources. Your continued ability to work to earn an income would therefore be one of your greatest assets. - read more
Start Here !
Apply now for your free Income Insurance assessment and price
comparisons!
All quotes are provided free and without obligation. We respect your privacy.
Knowledgebase
Loss Ratio: The ratio of claims paid by an insurer to the premiums earned, used as a measure of profitability.
