As Australia faces increasingly frequent and severe weather events, the inputs that go into the way insurers calculate premiums are changing.

Governments can play an important role in helping to keep insurance costs manageable by investing in structures such as levees to reduce the impact of natural disasters on communities.

If the public sector makes these steps, however, authorities and communities expect insurers to take this into consideration when pricing policies. But there are many complex factors that go into these calculations and climate change threats are constantly changing.

To read more follow this link: https://www.afr.com/companies/financial-services/future-of-insurance-20250721-p5mgkv