Jerome Laxale (Bennelong, Australian Labor Party) Share this | Hansard source

I thank the member for Warringah for bringing this motion to parliament, and I acknowledge her significant contribution to our national discourse about action on climate change. She knows, like all of us on the side of the House, that climate change isn't a distant threat. It's here, it's now, and it's reshaping our environment in ways that have profound implications for all of us. The extreme weather events that used to be rare are becoming more frequent and more severe, and they're driving up the cost of living in ways we can no longer ignore.

These events don't just damage our homes and infrastructure; they are primary drivers of the skyrocketing insurance premiums that so many Australians are struggling to afford. We know that insurance premiums are a contributing factor to stubbornly high inflation across the world. It's no surprise, then, that we see the impact of high premiums in areas most acutely impacted by climate change. In these areas across the country, some residents have seen increases of over 80 per cent to their insurance prices. This is not just an economic burden; it's a threat to the very security of these communities' resilience and livability.

The fundamental issue here is clear: as the climate crisis intensifies, so too does the financial strain on all of us. According to the Climate Council, insurance premiums across Australia are on a steep incline, with many households now facing the grim reality of being underinsured or even uninsured. The very nature of insurance—being a pool to support every policyholder—means that this is a problem for all of us. The rising frequency of natural disasters means that more and more Australians are finding it difficult to afford insurance that they need to protect their homes and their businesses.

The solution to this problem isn't simple, but it begins with acknowledging the root cause: climate change. Now, I say that with a caveat. It's simple for the government to understand that. It's simple for the member for Warringah and the crossbench to understand that. But this is something that the Liberals and the Nationals still do not understand. I'll spell it out for them: to address inflation and to address the cost of insurance, we must address climate change. Every dollar invested in resilience, whether it be through better infrastructure, improved building standards or community education, can save us up to $11 in disaster recovery. The Albanese government is aware of this challenge, and it has taken steps to address it, but we must acknowledge that these actions are part of a broader effort to combat the effects of climate change.

In 2022 Australia witnessed one of the most devastating flood events in our recent history. The sheer scale of the destruction was matched only by the profound impact it had on those affected. As a member of the parliamentary inquiry into insurers' responses to these floods, I had the privilege of hearing directly from the people whose lives were turned upside down by this disaster. What became abundantly clear throughout this inquiry is that the insurance system as it currently stands is not fully equipped to deal with the increasing frequency and severity of climate related disasters. The findings and recommendations that will come from this inquiry are critical, not just for improving how insurers respond to future disasters but also for ensuring that Australians can have confidence that their policies will protect them when they need it most. This inquiry has reinforced the importance of government action in addressing the challenges posed by climate change and its impact on the insurance sector. One of the most significant steps we can take is integrating climate resilience into our national construction code and land use planning. In June 2024, Australian building ministers agreed to add climate resilience as an objective of the Australian Building Codes Board. This paved the way for them to consider future standards to incorporate climate resilience.

It's important, though, to acknowledge that these measures alone are not enough and there's much more to do. The member for Warringah's calls for more action are reasonable and measured. Having worked in insurance and having listened to councils and policyholders, I know that we are heading towards a really terrible economic and ecological situation. Governments will need to work out what to do when insurers increasingly refuse to insure or price insurance out of consideration. Unlike the Liberals, who have their heads in the sand on climate change and action, the sensible people in this place must remain committed to the broader systemic changes that address the root causes of climate change and invest in climate resilience.

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