The number of Australian households facing home insurance affordability stress jumped 30% to 1.61 million in the year to March.

A report by the Actuaries Institute and Finity today defines affordability stress as households facing premiums that are more than four weeks’ gross income. 

Report lead author Sharanjit Paddam says as premiums outpace wage growth, the problem has worsened.

The proportion of affordability stressed households climbed to 15% in the year to March from 10% in 2022. “We expect this will continue because of the overall increasing risk of natural disasters associated with climate change, which will continue to put upward pressure on premiums,” Mr Paddam said. 

Median insurance premiums rose 9% in the year to March, according to the report. 

See Analysis.

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