Insurance to rise with sea levels

INSURANCE premiums will rise if no action is taken on climate change, the financial services minister, Chris Bowen, told Parliament yesterday.

A federal parliamentary report published on Monday recommended that the Productivity Commission investigate the gaps in insurance coverage for owners of coastal property as erosion, sea level rise and storm surges are set to increase with climate change.

The report also recommended that the commission should estimate the value of properties potentially exposed and examine a government mechanism that prohibits the continued occupation of land or future building development on property at serious risk of sea level rise.

The Insurance Council estimates of the value of property in Australia exposed to the risks from rising sea levels and increased storm damage ranges from $50 billion to $150 billion.

Sydney Morning Herald