How the Los Angeles wildfires could drive up Australian insurance costs

Natural disasters, such as the LA wildfires, have driven up insurance costs in Australia, with catastrophic fires in the US contributing to rising premiums. The Australia Institute analysis shows that the increasing frequency and intensity of natural disasters globally will impact insurance premiums in Australia, making coverage unaffordable in disaster-prone regions. The reinsurance market is also affected, as big reinsurers raise premiums to cover losses from events like Hurricane Ian, which made 2023 the third-costliest hurricane season on record.

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