Insurance shock heaps pressure on households and home builders

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The December quarter CPI inflation print revealed that insurance premiums rose at their fastest pace since the HIH Insurance collapse at the turn of the century:

Insurance inflation

The Australian Bureau of Statistics (ABS) explained that “higher reinsurance, natural disaster and claims costs contributed to higher premiums for house, home contents and motor vehicle insurance”.

The recent storms in Queensland will place further upward pressure on insurance costs, potentially driving more families to cease their coverage.

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About the author
Leith van Onselen is Chief Economist at the MB Fund and MB Super. He is also a co-founder of MacroBusiness. Leith has previously worked at the Australian Treasury, Victorian Treasury and Goldman Sachs.