Andrew Hall, Executive Director and CEO of the Insurance Council of Australia, will address the National Press Club of Australia.
The private insurance market helps us manage risk and allows us to take risks. It is a vital economic and social enabler, supporting Australians to do everything from take out a mortgage, drive a car, or open a business, as well as recover from the unexpected, whether that’s a burst water pipe or a devastating flood.
But rising insurance prices – driven by extreme weather events, inflation, our changing risk profile, and the response of global capital markets – is making cover more difficult for many to access. This is not just a problem for those families and businesses who are faced with rising insurance bills, it’s a wicked public policy problem we all have a shared interest in solving.
In insurance it’s known as the protection gap – the difference between the cost of recovering from unforeseen events and the insurance in place to cover those events. Unless we can make the long-term decisions and investments now, there will be terrible consequences for individuals and families, for our towns and regions, for the public purse, and for the economy.
This is also on the mind of new Reserve Bank Governor, Michelle Bullock. The Bank’s Financial Stability Review released in October called out the economic danger of more risk shifting from insurers to policyholders and communities.
Andrew Hall will discuss the protection gap and insurance affordability in Australia, putting forward options for insurers, communities, and public policymakers to reduce risk and moderate rising insurance costs.
