As it happened: Huge spike in uninsured home borrowers, Cbus execs apologise to senate inquiry, Orica boss upbeat on Trump 2.0
ABCWe heard from consumer groups about the risks to individuals from having to drop their insurance coverage, but there's also some pretty worrying modelling on the risks to the banking sector from Sharanjit Paddam, an actuary and the principal of Finity Consulting. "Our latest figures show that 1.6 million households in Australia have unaffordable insurance, and we define that as being where the insurance would cost them more than a month of gross household income, which we think is unaffordable," he observes. "People with lower incomes can only afford cheaper houses, and cheaper houses are often in flood plains, they're on the edge of the cities and therefore exposed to bush fires. "So we're taking our most vulnerable people from a socioeconomic perspective and putting them in our most vulnerable houses from a disaster perspective, and it's the combination of those two things that's driving the problem."
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Insurance affordability stress hits hard for one in eight Australian households
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