Extreme weather risks on the rise! How this may impact insurance premiums

 

A severe weather report released by IAG and the US National Centre for Atmospheric Research suggests that global warming will result in more extreme weather events in Australia.

Modelling suggests Sydney and Melbourne will most likely be exposed to more intense hailstorms, tropical cyclones will track further south and bushfire risks will increase in most of Australia as the climate warms.

The full report can be found here.

There is also a great article in the Sydney Morning Herald that summaries the findings of this report. You can read the full article here.

 

So how does this impact your insurance premium?

 

As an insurance broker, we’re seeing commercial property and business insurance premiums increasing. Over the last year, about a 10% premium increase would be the average.

The insurance companies and underwriting agencies we work with have advised us that higher frequency and larger claims have been one of the driving factors of increasing premiums.

This doesn’t mean you have to simply accept a large premium increase. It’s always worth approaching multiple insurance companies and underwriting agencies to see if there is a better deal out there.

As an insurance broker, we can do this for you. We specialise in business insurance for SME’s and commercial property insurance.

We would love to try and help you reduce your insurance premium. Call us today to discuss.