Several insurers in Australia have raised home insurance premiums sharply, however, they provide no explanations for these big increases to the policyholders, according to a new survey published in September 2026.
The 52-page new investigation report “Signal Failures: What are insurers telling us with their pricing” conducted by consumer advocacy organisation CHOICE in collaboration with the Financial Rights Legal Centre reveals that this is a clear violation of the industry code of practice in their communications to customers.
The survey included 52 home insurance policyholders across Australia. The survey revealed that when the insurers raise their premium, they need to explain why they have to charge the policyholder more. Also, the General Insurance Code of Practice, mandates that renewal notices should show the old premium next to the new one so policyholders can see the difference. But the recent research findings suggest that few insurers follow these rules.
Three in four insurers gave no explanation for why a customer’s premium has gone up. The surveying agencies have called upon the government to require insurers to explain the factors behind premium increases and provide information about how to reduce them.
CHOICE has said that a home is a family’s most valuable asset on the line and not being able to afford to insure it is potentially disastrous. The least the insurers can do, explain why they have to charge so much more.
FRLC’s principal of external relations and advocacy Julia Davis said, “Insurers know more about the risks facing our homes than anyone else, yet consumers are routinely given a premium increase without any meaningful explanation of what’s driving it.”
A nationally-representative survey conducted by CHOICE this year found that only 17% of respondents trust their insurance provider, the lowest figure since the survey began 11 years ago.
CHOICE head of policy Morgan Campbell said record-low levels of trust are not surprising, given what consumers have told us. “Homeowners are clearly frustrated with skyrocketing premium increases that arrive without clear justification.”
In recent years, for many homeowners insurance renewal notices have arrived like a bombshell, where their premiums have doubled, tripled or worse even more.