Weather risk is influencing where Australians choose to live and work, particularly among people aged under 45, according to a new IAG report.

A survey of 2400 consumers of all ages found 53% considered weather risk in such decisions.

The figure was 73% among adults aged 29 and under (Gen Z) and 65% among those aged 30-45 (Millennials).

Only 27% of Baby Boomers – aged over 62 – cited weather as a factor.

“Extreme weather is becoming a routine part of Australians’ lived experience, elevating awareness of climate risk,” the IAG Resilient Futures Report says. “While ... many are taking practical steps, preparedness remains inconsistent.”

Two-thirds of households and about half of SMEs report being affected by recent extreme weather.

IAG says climate-related disruption is emerging as a prominent business risk, yet “gaps persist” in companies’ continuity planning and regular reviews of insurance coverage.

Competing priorities and uncertainty about actions that will make the biggest difference are limiting preparedness, particularly among younger people and small businesses, the report notes.

The survey found younger Australians are more exposed to “wellbeing risks” amid personal and emotional pressures; older cohorts face technology-related risks as they contend more with external, practical issues.

Overall, preparedness is “often falling short of awareness” as basic actions such as maintaining homes, keeping insurance up to date and putting plans in place for disruption are frequently overlooked.

“The gap in preparedness is more pronounced among younger Australians, reflecting differences in life stage, financial position and levels of responsibility.”

See the report here.

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Consumer advocates have unveiled a sweeping plan to make 'legacy' homes more resilient as the climate crisis gathers pace. See the details in the latest Insurance News magazine

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