Published | 18 August 2026
RACT has welcomed a new report from the Tasmanian Policy Exchange that captures important insights into the drivers of insurance prices.
The report, commissioned in partnership with RACT, found that Tasmanian insurance prices have been impacted by a range of factors, including higher rebuilding costs, taxes and the increasing risk of bushfire and flood.
Critically, it found that climate risks are pushing costs up fastest for the households that can least afford it. This is because many of the highest-risk flood areas are also among the state’s lowest-income communities.
RACT General Manager Advocacy and Government Relations, Mel Percival, said the report reinforced the importance of RACT’s ongoing focus on building community resilience to natural disasters.
“The Tasmanian Policy Exchange’s important research provides further evidence to inform policies that can help keep insurance affordable and accessible for households and small businesses,” Ms Percival said.
“We know that every $1 spent on resilience returns $4 in benefit, including direct insurance savings.
“The report highlights the example of flood levees across Tasmania which save $19.4 million in insurance premiums every year.”
Ms Percival said the report provided an evidence-base and endorsement for the interim TasInsure partnership recently signed between the RACT and the Tasmanian Government to drive action on insurance affordability.
“RACT is deeply committed to a partnership approach to address insurance affordability in Tasmania, including taking coordinated action to reduce climate risk, protecting vulnerable households and ensuring the insurance system works for those under the most pressure,” Ms Percival said.
RACT is investing $1.2 million to fund the University of Tasmania’s Fire Centre’s world-leading research on bushfire risk.
It is also working in partnership with Hobart and Kingborough Councils to deliver a pilot program to identify the most effective strategies to prepare individuals and communities for the threat of bushfire.
The pilot includes conducting assessments with households and using interactive mapping and modelling software to visualise risk and recommend the most effective mitigation measures.