In part 1, we discussed the importance of governments promoting risk-mitigation measures and regulation in the insurance market to reduce insurance premiums and to ease policyholders’ ability to select appropriate insurance coverage. However, these policies alone may not alleviate the most unaffordable insurance premiums in the most risk prone areas,

Australia has been plagued by unprecedented natural disasters in recent years. Natural disasters cost the Australian economy $18.2 billion annually, a figure that is expected to rise to $39 billion by 2050 due to climate change and urbanization into risk-prone areas. In response, insurance premiums have doubled in the