Senators have launched an inquiry into insurance challenges, specifically around the impact of climate risk on premiums and coverage.

The probe joins a raft of other insurance-focused inquiries, including the House of Representatives’ ongoing investigation of insurers’ handling of the 2022 floods.

Labor senator Tony Sheldon, a member of the new inquiry committee, told insuranceNEWS.com.au it “will further help in identifying areas where the government can assist Australians with rising insurance premiums. Since July 2022, more than half of Australia’s local government areas have experienced natural disasters.”

NSW senator Mehreen Faruqi, deputy leader of the Australian Greens, moved last Thursday in the upper house for the establishment of the Select Committee on the Impact of Climate Risk on Insurance Premiums and Availability.

The committee will present its final report by November 19. It is also seeking submissions on the extent to which increased climate risk is priced into insurance products not exposed to such risk.

The Insurance Council of Australia says it will examine the inquiry’s terms of reference. “ICA will work with the Senate committee to reduce any duplication of the work of the House Economics Committee,” a spokesperson said.

Click here for more on the inquiry.

From Insurance News magazine: After rolling catastrophes and amid intense scrutiny from authorities, how can insurers get it right next time disaster strikes?