At $4.5bn each year extreme weather is costing Australia three times as much compared with 1990s, insurers say

The costs of extreme weather events such as floods, bushfires and storms have nearly tripled in Australia since the 1990s, insurers have warned, with poorer communities disproportionately burdened.

The climate crisis, ageing infrastructure and growing populations in increasingly affected regions have left the country more vulnerable, according to a report released on Tuesday by the Insurance Council of Australia.

In the 2020s, extreme weather has been responsible for $4.5bn in claims annually on average, the ICA report said. The three events declared as insurance catastrophes in 2025 alone generated nearly $2bn in claims, most of which related to housing.

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Ex-Tropical Cyclone Alfred cost households and businesses over $1.4bn in claims, while flooding in n