The federal government should set up a forum in the next six months to drive a national housing resilience program tackling insurance affordability, a cross-sector coalition says.

The group’s Housing Resilience Action Plan 2030 proposes creating a national risk and resilience rating system (NRRRS) that would be recognised across the insurance, finance and building sectors.

It suggests more than 50 actions across one, three and five years to do “what must be done now” to support the growing number of homes that cannot access affordable cover as climate risks intensify and construction costs rise.

Julia Davis, senior policy and communications officer at group member the Financial Rights Legal Centre, says rising premiums are not sending useful signals to policyholders or incentivising action, and customers are frustrated.

“Households need relevant and appropriate risk and resilience information they can act on and have that reflected in their insurance premiums,” she said. “This action plan will empower Australians to make their homes safer and ensure their financial security into the future.”

The plan was developed by Monash University, Financial Rights Legal Centre, Financial Counselling Victoria, the Resilient Building Council, Finity and ARC Justice, after a December workshop involving government, insurance, banking, investment, academia and community sector experts.

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The NRRRS would build on Resilient Building Council ratings, allowing a rapid rollout, with support from the federal government needed to ensure legislative and regulatory frameworks and national consistency.

The plan includes proposals around funding, consumer advice, building back better and product innovation, including that government, insurers and consumer groups explore multiyear home products that provide more pricing stability for households that spend on resilience.

Action to support parametric insurance – including group schemes held at local government level and products aimed at SMEs – should be developed to speed payouts when disaster thresholds are reached, it says.

The Actuaries Institute’s home insurance affordability index shows the proportion of households facing unaffordable cover climbed from 10% in 2022 to 15% in 2024, equivalent to 1.6 million homes.

Finity principal Sharanjit Paddam says no insurer, bank or government can turn the problem around in isolation.

“The system is highly interconnected, so when everyone moves in the same direction behind a shared framework, reducing risk and restoring affordable insurance becomes achievable,” he said.

“A national housing resilience accord, convened by the federal government this year, is the critical first step.”

See the plan here.

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