Big banks join scheme cutting home insurance costs
BIG BANKS JOIN SCHEME CUTTING HOME INSURANCE COSTS
More Australians will receive lower insurance premiums with major banks NAB and CommBank joining the Albanese Government-backed Resilience Ratings Scheme.
The Albanese Government has invested $3.2 million in the world-first scheme, helping people make their homes more bushfire resilient and unlock cheaper insurance.
Australian households have saved up to $840 a year through the scheme, with some households reducing the bushfire risk component of their premiums by up to 60 per cent.
Half of Australia’s home insurance market recognises the program now NAB Insurance (underwritten by Allianz) and CommBank Insurance (underwritten by Hollard) and have joined NRMA Insurance and Suncorp’s brands.
This is a major milestone for resilience-based insurance pricing in Australia and delivers on key principles endorsed by the Hazards Insurance Partnership.
The free Bushfire Resilience Rating App was launched by the Resilient Building Council (RBC) in 2023.
Households can quickly self-assess their home and receive a free personalised list of recommended actions. Once upgrades are certified by RBC, households can receive premium reductions from participating insurers.
More than 63,500 households across 324 Local Government Areas have already completed home assessments.
Households can access the free Bushfire Resilience Rating App at: https://resiliencerating.org/
Quotes attributable to Minister for Emergency Management, Kristy McBain:
“The Albanese Government is investing in the tools and information Australians need to protect their homes and get cheaper insurance at the same time.
“I welcome NAB and CommBank to the Resilience Ratings Scheme and encourage other banks and insurers to come aboard this fantastic initiative.
“This is another example of how we are strengthening disaster resilience for all Australians.”
Quotes attributable to the Assistant Treasurer, Dr Daniel Mulino:
“Resilience and mitigation measures not only help people prepare and protect themselves and their homes, but should also help lower insurance costs.
“We have been working closely with the insurance industry to make sure actions such as the Bushfire Resilience Rating program are recognised when it comes to assessing premiums.”
Quotes attributable to the Assistant Minister for Emergency Management, Josh Wilson:
“At a time when insurance affordability is one of the biggest pressures on household budgets, this practical and easy-to-use app will help Australians to make their homes safer and get cost-of-living relief.
“The Albanese Government is focused on improving resilience to climate risks through investment in both community-scale infrastructure like flood levees and in household measures like the Resilience Ratings app.
“By leveraging the best data and analysis that is maintained by the Australian Climate Service and that was greatly uplifted through the National Climate Risk Assessment we have the opportunity to significantly reduce harm and reduce costs.
“As more banks and insurers recognise the Commonwealth-funded Resilience Ratings initiative we can give more homeowners access to choices that deliver more affordable coverage for their homes and properties.”
Quotes attributable to Kate Cotter, Resilient Building Council CEO:
“Australia is the first country in the world where households can measure the resilience of their own homes and get customised action plans that will reduce their insurance premiums.
“There are many low-cost actions households can take today to reduce risk to their home, like sealing gaps around doors and windows, installing ember screens on vents and moving combustible materials away from walls and windows. We encourage everyone to use the free app to find out what will make a difference for their individual home.”
Quotes attributable to Insurance Council of Australia CEO, Andrew Hall:
“The Resilience Ratings system is an Australian innovation now being studied globally as proof that household-level risk reduction can help improve insurance affordability.
“This free program is vital in helping Australians be more prepared before the inevitable next disaster strikes.”
Quotes attributable to Ana Marinkovic, Group Executive Personal Banking NAB:
“Many Australians want to make their homes safer but aren’t always sure where to start. The free app gives customers clear actions they can take to reduce their exposure to natural hazards, with those improvements unlocking insurance incentives that help lower the cost of protecting their home.
“The sooner people act, the more confidence they can have that their home is ready when it matters most. By completing a Bushfire Resilience Rating assessment, homeowners receive practical, tailored actions they can take to improve their property’s resilience and be better prepared for future bushfire seasons.”
Quotes attributable to Paul Fahey, Hollard CEO:
“Australians are increasingly looking for ways to protect their homes, families and communities from extreme weather and disaster. The Bushfire Resilience Rating app provides a trusted way for homeowners to understand the steps they can take to protect their homes, and for Hollard to recognise resilience measures for eligible CBA Home and Landlord Insurance customers who gain a certified Bushfire Resilience Rating of 3 or more stars, and reward them through their insurance premium.
“We’re proud to support this initiative to help strengthen resilience education and action in bushfire-prone areas across Australia, and help build stronger homes, safer communities and a more resilient future.”
Quote attributable to Richard Feledy, Allianz Australia Managing Director:
“Allianz is proud to support initiatives that empower customers to better understand their exposure to risk and take practical steps to strengthen resilience. Through our partnership with NAB on the Bushfire Resilience Rating app, we are helping Australians to make their homes safer and more resilient to extreme weather events like bushfires.”
Quotes attributable to Julia Davis, Principal External Relations & Advocacy, Financial Rights Legal Centre:
“Banks, Insurers, households and governments need a common language when it comes to risk and resilience. The rating system designed by the RBC gives insurers and banks the verified information they need to do accurate risk assessments, but more importantly, it gives consumers a trusted tool to take action to reduce the risk on their own properties.
“Australian households in communities where insurance is unaffordable need reliable, trustworthy and independent information about the risks facing their properties and what steps they can take to make their homes safer and insurable.”
ENDS
MEDIA CONTACTS:
Minister McBain’s Office: David Jean 0467 559 492
Resilient Building Council: Nikki Castle 0414 413 882
