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Protecting the Basics report highlights insurance gaps

MEDIA RELEASE: SACOSS is releasing a new report: Protecting the Basics: Insurance access for people on low incomes at risk from climate emergencies.

The report finds that there is a significant proportion of people in South Australia on low incomes with uninsured homes, contents, and cars because they can’t afford insurance. It highlights the potential negative consequences in the face of natural disasters, and proposes several strategies that government could take to increase access to insurance for people on low incomes.

“As more households experience financial stress due to the COVID-19 pandemic, more and more households are likely to be unable to afford their insurance premiums, and be letting their cover lapse,” said SACOSS CEO Ross Womersley.

“When a natural disaster hits, people in this situation face catastrophic financial losses that they may not have the resources to recover from. They may fall into poverty, have their poverty further entrenched, or even end up pushed into homelessness.

“Insurance must be treated as an essential service. Government natural disaster planning relies on individuals purchasing appropriate insurance for their home, contents, and vehicles.

“If access to insurance for people on low incomes is not addressed, we face potentially catastrophic social and financial outcomes in future natural disaster seasons, which may result in a greater number of people experiencing poverty.

“SACOSS is calling on the government to step up and tackle insurance unaffordability.

“We urge the government to implement a percentage-based concessions scheme for people on low incomes to receive rebates on their home, contents, and vehicle insurance premiums.

“Redressing the current situation is urgent. Access to insurance must be improved before the next severe natural disaster season reveals the extent of individual, societal, and financial costs of uninsurance in South Australia,” he stated.

South Australian financial counsellors can attest to the potentially devastating impacts of not having insurance cover.

The South Australian Financial Counsellors Association’s Executive Officer, Kate Fox, said that financial counsellors know all too well how hard this blow can strike.

“Financial counsellors have seen the impact of not having insurance cover for essentials such as home, contents and vehicles. It is often already a difficult time personally for people to deal with such a loss and then to add to that the financial burden of not being insured or being underinsured, the consequences can be devastating,” she stated.  

“SAFCA supports SACOSS’s proposal for a concession scheme to provide access to affordable and appropriate insurance options for people living on low incomes as essential to provide cover for loss after natural disasters and unexpected events.”

Charitable organisation Good Shepherd is also acutely aware of the barriers for people on low incomes taking out insurance. “Cost is a major obstacle as well as the complexity of policies, the claims process, and comparing options for low-income households and vulnerable populations,” said Good Shepherd CEO Stella Avramopoulos.

“What SACOSS is proposing would be a vital step towards addressing some of these obstacles for people on low incomes, particularly with the increasing impact of climate change and disasters on vulnerable communities,” Ms Avramopoulos said. 

Quick facts:

Insurance premiums have been rising, and they are not affordable for everyone.

  • South Australian insurance premiums are increasing rapidly – the most recent CPI data show that for Adelaide, insurance premiums for home, contents and vehicle insurance on average increased by 8.5% in 2021 (compared to an increase of 3.4% nationally).
  • Of low-income households where people own their home, it is estimated that between one in 10 or 15 of those households do not have home insurance.
  • Approximately one in two or three people who are living on a low income do not have contents insurance.
  • One in four people who are on a low income and have a vehicle, do not have comprehensive vehicle insurance.

The Protecting the Basics report is available here

*Note: the survey ranges reported above reflect the fact that we have drawn on a range of surveys in these areas, which report some differing results.

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08 8305 4222

sacoss@sacoss.org.au

Marjorie Black House
47 King William Road Unley SA 5061

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KELLY VINCENT

Kelly is a writer and an advocate living on Kaurna land. At age 20, they won the State Theatre’s Young Guns Award for young playwrights for Gravity. At 21, they became Australia’s youngest Member of Parliament and first-ever appointed specifically on the platform of disability rights. From 2010 to 2018, Kelly represented the Dignity Party in the Upper House of South Australia’s State Parliament, making vital changes to the way service providers, the built environment, and the justice system respond to the needs of disabled people. They are now Creative Director of True Ability, a disabled persons’ theatre company they co-founded in 2020.

CHERYL AXELBY

Cheryl is a proud Narungga Woman, living on Kaurna land, and is passionate about improving the quality of life for her people. Cheryl has extensive experience working with Aboriginal communities, and federal and state government sectors at senior and executive level in a career spanning over 43 years. Currently she is National Co-Chair of Change the Record, Head of Aboriginal Housing – Housing SA and in March 2024 she was elected as the Central Region 1 representative in the historic First Nations Voice to SA Parliament.

DAVE ADAMSON

Dave moved to Australia following a 30-year academic career in the UK. He has since worked in the Community Housing sector and authored the 2016 Towards a National Housing Strategy, and helped to establish the Everybody’s Home campaign. He also researches the interface between poverty and climate change and actively supports the United Nations Sustainable Development Goals. He has worked with government at all levels and has experience of policy development and evaluation. He is co-author of Sustainable Places: Addressing Social Inequality and Environmental Crisis (2022, Routledge). In his spare time he plays and builds guitars.

ROHAN FEEGRADE

Rohan is an experienced and forward-thinking CEO, senior executive and board director with demonstrated expertise across the not-for-profit, private and government sectors. Currently CEO of Lutheran Care, he has proven record for creating substantial organisational, stakeholder and client value, and has extensive experience in strategically positioning organisations for transformational change and growth within the health, disability, education and community service sectors. Rohan is a socially responsible professional, genuinely passionate about creating opportunities for people who live with disadvantage and disability, always acting ethically to serve those he works with and for.

DR JEN CLEARY

Jen is a human geographer, with a background spanning social services and social policy ,vocational and higher education and regional, rural and remote research and development. She is currently the Chief Executive Officer of Centacare Catholic Country SA (CCCSA), a for-purpose organisation providing social services in regional, rural and remote communities in South Australia, across a footprint of some 980,000 square km. She was awarded a PhD in Geography from the University of SA in 2014. She holds an adjunct professorial position with the Centre for Social Impact at Flinders University and is a member of the Advisory Panel for the University of SA Justice and Society Arts Program.

NANCY PENNA

Nancy has than 30 years of experience in South Australian community services, and a a unique understanding of the political and social landscape and the issues and opportunities facing South Australia. Currently responsible for the strategic and operational oversight of AnglicareSA’s community services portfolio, she has previously held executive roles in government within child protection and disability, with her executive experience underpinned by her earlier career as a social worker in child protection and youth justice. She is also Chair of the Child and Family Focus South Australia (CAFFSA) Board and most recently on the Housing Security for Older Women Taskforce.

NICOLE CHAPLIN

Nicole is a dedicated and experienced youth support professional, specialising in solutions for disadvantaged young people in South Australia. As CEO of St John’s Youth Services, she oversees innovative programs like youth110 and Foyer Port Adelaide. With over thirty years in the community sector, Nicole has built extensive networks and her expertise spans governance, service delivery, policy development, and partnerships. Recognised with the 2018 AHI Inspirational Leader Award, Nicole is an active participant in housing and homelessness networks. She holds leadership roles in various organisations, including Anglicare Australia’s National Reconciliation Network.

EMMA CROSBY

Emma is a chartered Accountant with more than 15 years experience as a board member, finance and business professional, strategic advisor and company secretary. She has strong values and a passion for enabling and leading organisations to meet its operational and strategic direction through long-term financial sustainability, operational efficiency, innovation, leadership, transformation and partnerships. As Treasurer and Board member at SACOSS, she is committed to successfully leading and making a purposeful impact to the organisation and its stakeholders.

David PANTER

David has worked in health and social care for almost 45 years, over half of which has been as a Chief Executive. In the UK he initially worked in the NHS and more latterly in local government, where he was Chief Executive of Brighton & Hove City Council. In 2004 David was recruited to the South Australian public health system for over 10 years leading reforms including the development of the new Royal Adelaide Hospital. From 2015-2022 David was the Chief Executive of not-for-profit aged care provider ECH. At the end of January 2022 David became the Chief Executive at Minda, SA’s largest provider of services to people living with an intellectual disability.

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