“The most recent floods have really highlighted the issues of that under insurance or … inability to obtain insurance, profoundly,” KPMG’s Scott Guse, a co-author of its review, toldKPMG’s report said modelling was predicting more severe events with climate change, and among industry headwinds warned of “a looming market failure and potential significant risk of underinsurance for some locations and classes of assets as natural perils become uninsurable”.
But Mr Guse countered that insurers were extremely competitive and any one trying to earn super profits in any areas would find rivals moving into such locations, putting downward pressure on premiums. “[This] could lead to an acceleration of unit losses, something which has plagued both IAG and Suncorp in their home insurance business over the past decade. For many customers, insurance has already become a luxury item,” he wrote.
Yet he added that “if you look at pure economics at play, I just cannot see how government can intervene because insurers are not interested or cannot get involved in environments [routinely flooding] because they can’t price it”.
First of all, get rid of the LNP rabble who deny climate change and don’t have the capability to deal with it anyway.
Its only going to get worse and more frequent. This is just the beginning.
Why do people living in flood prone areas think they are entitled to flood insurance?
Looming