As ex-Tropical Cyclone Alfred causes major floods in northern NSW and southern Queensland, we should remember that rising insurance premiums aren’t just driven by extreme weather but also by outdated regulations. Australia’s insurance sectors – divided into general, life, and health insurance – require separate licences for each to operate, adding inefficiencies that drive up costs.
The industry is in crisis. Insurance costs have surged 11 per cent in the past year, with health insurance premiums set to rise by 3.7 per cent from April 1. The Australian Prudential Regulation Authority warns that insurers are struggling, premiums are rising and Australians are left with fewer choices and higher costs.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.