Australians Struggle with Rising Insurance Costs
As the cost-of-living crisis deepens in Australia, many people are finding it increasingly difficult to afford basic insurance. This is causing concern among financial experts, who worry that Australians are putting themselves at risk by going without insurance.
Anna, a 51-year-old woman from Victoria, is one of many Australians struggling with rising insurance costs. She currently spends close to $900 a month on all insurance costs, and is considering cancelling her health insurance policy. This comes after she was referred to three specialists by her GP, but couldn't afford to see any of them.
Official inflation data shows that insurance prices are rising at their fastest rate since 2001, with an annual increase of over 16%. The Australian Bureau of Statistics attributes this to higher reinsurance costs, natural disaster claims, and rising costs for building and vehicle repairs.
Financial counsellors are reporting that many of their clients are now seeing home insurance as a luxury. In New South Wales, it is estimated that over half of financial counselling clients do not have any form of household insurance. This number is even higher in northern New South Wales, where nearly all clients are without home insurance.
Financial planner Simon Cutler says that despite warning his clients of the risks, they are increasingly cancelling their policies to save money. He also notes that more younger Australians are rejecting insurance altogether and opting for crowdfunding platforms like GoFundMe when disaster strikes.
Financial counsellors question the validity of the sharp increases in some premiums, and the Insurance Council of Australia has cited escalating costs of natural disasters, rising asset values, and inflation as reasons for the price hikes.
The rising cost of insurance is a major concern for many Australians, who are struggling to make ends meet. It is important to carefully consider your insurance needs and to shop around for the best deals. However, it is also important to remember that insurance can provide valuable protection against financial hardship in the event of an unexpected event.