The Productivity Commission has proposed the creation of a resilience rating system for housing to ease pressure on home premiums as climate change intensifies.

It is one of four recommendations to reduce barriers to private investment in adaptation, along with: a database of climate hazards; action to improve housing resilience; and giving the Climate Change Authority legislative powers to track policy action.

The commission made the recommendations in an interim report on clean energy and the net zero transition following an inquiry ordered by Treasurer Jim Chalmers last December.

The Insurance Council of Australia says the report makes several important recommendations that align with industry priorities, including changes to planning systems.

“These reforms are becoming increasingly critical as extreme weather events intensify and grow in frequency, ensuring properties can withstand these risks while putting downward pressure on insurance premiums,” an ICA spokesperson told insuranceNEWS.com.au.

“Any reforms should be developed in close consultation with the insurance industry to utilise the extensive knowledge and data insurers have about climate risks, and to avoid any unintended consequences.”

The commission is seeking submissions on its proposals before a final report. The closing date is September 15.

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