APRA’s latest Insurance Climate Vulnerability Assessment says around 1 in 7 Australian households are already without home insurance protection. By 2050, that could rise to 1 in 4.
This is often framed as a climate problem.
It is also a housing system problem.
Because insurance is not priced only on hazard. It is also priced on uncertainty: variable build quality, weak evidence chains, poor traceability, inconsistent site execution, and unclear long-term risk.
A better housing system does not eliminate climate risk. But it can reduce the avoidable uncertainty layered on top of it.
Insurance is not just a cost of ownership. It is a delayed verdict on system quality.
Source: APRA, Insurance Climate Vulnerability Assessment (24 Mar 2026)
System note: Trust costs are built into insurance bills.