A "perfect storm" of more frequent natural disasters, poor planning decisions and high inflation is driving up insurance costs for all Australians, but particularly the nation's most vulnerable households, a new report warns.

Extreme weather events including floods, storms, bushfires and earthquakes cost Australians around $4.5 billion annually, the research from the Insurance Council shows.

It also warns climate change is making natural disasters more expensive every year.

"The acceleration is undeniable," the Insurance Catastrophe Resilience Report says.

Council chief executive Andrew Hall said high inflation had pushed up the cost of repairing homes and businesses, making the recovery from major disasters more expensive.

"Australia's had the perfect storm of insurance challenges,"

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