Do low-income earners who move to cities and towns in cyclone zones understand the risks? And if they do, what level of protection can they afford?

These are questions being investigated in a new social study in Cairns by James Cook University sociologist Nick Osbaldiston.

The catalyst for the research is the Federal Government-commissioned report last year into insurance affordability in northern Australia, which focused on the cost of insurance cover but recommended greater levels of resilience in buildings as the most effective way to lower premiums.

Dr Osbaldiston says one objective of the survey is to examine people’s perceptions of why property insurance costs in the region are so high.

“Do people not know why the costs are so high because they don’t understand the risks?

“We are interested in the political debate and why insurers are copping it,” he told insuranceNEWS.com.au.

The research will also establish if people who move into an area like Cairns comprehend the cyclone risks, or whether insurance cover and its cost are considerations.

“Although Cairns is seen as having an affluent society, there are pockets of low-income earners and we see a spending inequality.”

Dr Osbaldiston says the survey will look at both renters and owners and establish if renters do take out home and contents cover.

He hopes the survey will show if the affordability of cover is being weighed up against the risks involved in living in the area. It will also look at people’s perception of the risks and how they decide whether to insure.

“We want to find out if people moving here who have experienced natural disasters before have been influenced in their decision.”

The survey has funding until the end of the year. It will involve an online survey, with members of Dr Osbaldiston’s research team also undertaking neighbourhood mailouts to increase the number of responses.

He says the final report will be available for all stakeholders, including insurers, although there is no date for its release at this stage.