31 May 2024

Insurance Affordability and Natural Hazards Risk Reduction Taskforce

The Albanese Government is establishing the Insurance Affordability and Natural Hazards Risk Reduction Taskforce as part of the federal budget to develop an integrated, cross‑government approach to minimising the impacts of disaster on the community and help address insurance costs driven by more frequent and intense weather events.

The government is committed to working with insurers and local communities to improve insurance affordability. We want Australians to earn more and keep more of what they earn.

We know household budgets are under pressure and insurance costs are contributing. Natural hazard risk is a key factor impacting insurance affordability, and contributing to cost of living pressures, for communities across Australia.

Different Australian government agencies play a role in reducing natural hazard risk and the taskforce will work closely with these agencies to ensure a comprehensive, whole of government approach on a range of issues, including:

  • Community level risk reduction
  • Hazard risk reduction
  • Economic impacts of underinsurance
  • Standardising natural hazard definitions
  • Other near‑term solutions to improve affordability

The Taskforce will be led by the Department of Prime Minister and Cabinet in order to coordinate a whole of economy view of the issues impacting insurance affordability and solutions to reduce risk from natural hazards.

This work will be informed and complimented by work already underway through the Hazards Insurance Partnership, which was established by the Albanese Government in the October 22–23 budget.