OPINION: Queensland’s insurance future hangs in the watery balance

AffordabilityCAT EventsClaimsClimate & SustainabilityEmerging RiskGeneral InsuranceReinsuranceTechnical KnowledgeUnderwriting

As the Federal Budget landed without the Insurance Council of Australia (ICA's) proposed $30 billion flood defence fund, one question is becoming harder to ignore: what happens if parts of Queensland become uninsurable? The issue is no longer theoretical. The...

25 May 2026

4 mins read

A

OPINION: Queensland’s insurance future hangs in the watery balance

Summary

One in four Australian households could be uninsured by 2050. Queensland’s flood crisis is becoming a warning for the entire region as governments, insurers and communities search for workable answers.
By Anna Lopata – Senior ANZIIF Writer

As the Federal Budget landed without the Insurance Council of Australia (ICA’s) proposed $30 billion flood defence fund, one question is becoming harder to ignore: what happens if parts of Queensland become uninsurable?

The issue is no longer theoretical.

The Australian Prudential Regulation Authority (APRA’s) new Mind the Gap report warns Australia’s home insurance protection gap could widen from around one in seven households today to one in four households by 2050.

Queensland sits at the centre of the problem.