What’s driving monstrous price rises in insurance premiums

Natural disasters are being blamed for massive insurance premium hikes.

3AW Mornings has been inundated with complaints from people about the huge jumps in their home and contents and car insurance prices.

In one example, a Pascoe Vale South family’s home insurance has gone from $2223.41 to $14,856.51 annually.

Andrew Hall is the CEO of the Insurance Council of Australia and said the issue had been building for a while.

“It’s a tough insurance market, at the moment,” he said.

Mr Hall said costs for insurance companies themselves were soaring.

“Over the last few years, about $11 billion in insured losses have been paid out to more than 720,000 people,” he said.

Press PLAY below to hear him explain why prices are on the rise