Unprecedented premium rises

Insurance companies are concerned about climate change.

THE nation’s largest insurers have warned Australians to brace for more catastrophic weather brought on by a rising global temperatures.

Pity they’ve been cooling…

Pity that hurricane et. al activity has been decreasing not only in average frequency but also average intensity the last 30 years (media coverage may have increased, though… satellite technology, cable TV, instant news, the need for a hot story…).

Er, this is Australia, and any recent “unprecedented” weather events have well been quite well precedented in the past and then some.

“Australia is likely to be one of the countries most affected by climate change, with more than 80 per cent of the population residing within 50 kilometres of the coast,” IAG said.

Uh-ha. Wouldn’t be an excuse to raise premiums, would it?

    • Merilyn
    • January 5th, 2012

    Raise their prices? To right it is. Sneaky little devils aren’t they?

    • mabba
    • January 5th, 2012

    So now we have two types of disasters- the short sharp ones like last year’s floods, & the long drawn out ones like rising (when??) sea levels. Either way, prem’s rise- & so does your blood pressure!

    • Sean of Deer Park
    • January 5th, 2012

    Several points that struck me when I read about this…

    1. Gillzilla (thanks CJ) said, no-one is allowed to increase their prices because of the ‘Carbon Tax’. Apparently, the way around this is to simply say ‘climate change’ is real’? Carbon Tax is a direct result of imagined and unproven ‘Climate Change’. Fact.

    2. Insurance companies are supposed to have ALL funds available, given the worst case scenario, to be able to issue policies in the first place. Does this mean the big insurer’s are technically insolvent, given they are crying poor-mouth and take so long to payout on claims made?

    3. Why have the insurers still not paid everyone effected by the Qld, Vic and NSW Floods and still haven’t paid out victims for the Victorian Bush Fires?

    4. Why do insurance premiums increase every single year for fully comp car insurance, even though the vehicle being insured decreases in value every, single, year and all the companies now have a rule to not use new parts if the vehicle is over 5 years old? It’s a scam.

    An enquiry needs to be had to look into these shysters. It is very interesting (and telling) the fact large corporations do not have insurance at all. It is cheaper for them to self insure; meaning they just go out and buy new or replace any damage at their own expense. What this means is only the little people are being ripped off, year after year after year.

    Perhaps a Royal Commission and some class action law suites against the Insurance industry are now required to keep these leeches on society in their box.

    • Excellent points, Sean, esp. point one… and the question on their solvency.

      Ho hum, it’s different over here. My primo car insurance (covers medical, too, and anyone else’s medical who’s involved) goes down every year, I get a payout worth the value of the car (little more but shhh) if I total it, my insurance lady sends me gifts every year, and what I’ve paid in goes into a fund, much of which I can get back should I choose to leave.

      A grand or so the first year. Now about 500.

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