An Australian superannuation fund is advocating for QBE to reform its coverage policies amid criticism that the insurer can underwrite fossil fuel projects with no restrictions while attributing steep premium rises to the climate crisis. This criticism comes on the eve of QBE’s annual general meeting in Sydney and against a backdrop of rapidly increasing premiums, which have priced some households out of insurance coverage.
Homes situated in flood and fire-prone areas have faced significant insurance cost increases, with some homes deemed uninsurable as climate-related disasters strike more often and with greater intensity. Experts point out that individuals with inadequate home insurance are more inclined to underestimate the risks of natural disasters, such as bushfires, potentially risking their lives.
Australian Ethical’s Amanda Richman highlighted that QBE permits underwriting new oil and gas projects without any restrictions, making it a notable outlier among insurers. She criticized QBE’s engagement with fossil fuel clients as superficial, suggesting that the insurer is not adequately addressing the lack of progress in reducing climate risks.
Insurance premiums across various categories have seen near annual double-digit increases, pressuring households and contributing to inflation. Insurers have cited extreme weather events, rising home values in high-risk areas, high inflation, and increasing reinsurance costs as reasons for these rises.
The growing disconnect between support for fossil fuel projects and the necessity to mitigate climate risks is highlighted by scientific analysis showing that greenhouse gas emissions from existing fossil fuel infrastructure are set to exceed climate goals. A parliamentary committee recently recommended a levy on coal and gas extraction to fund disaster response and offset rising insurance costs, underscoring the urgent need for policy reform to address the financial and environmental implications of climate change.
Source: https://www.theguardian.com/australia-news/2025/may/08/australian-ethical-super-fund-qbe-fossil-fuel-projects-rising-premiums
