Australians’ well-documented affinity with the sun, surf and sand continues to fuel coastal property market growth. This growth defies rising interest rates and growing evidence of the impacts of climate change on people living in vulnerable coastal locations.
People in these areas are finding it harder to insure their properties against these risks. Insurers view the Australian market as sensitive to climate risks, as climate change impacts can trigger large insurance payouts. They are pricing their products accordingly.
Clearly, there is a vast disconnect between the coastal property market and climate change impacts such as increasingly severe storms, tidal surges, coastal erosion and flooding. There is no shortage of reports, studies and analyses confirming the climate risks we are already living with. Yet another alarming State of the Climate report was released last week.
