As climate risks increase, many Australian households are facing growing pressure from rising insurance premiums. That is why we are investing in practical tools that help households understand their risk and take action.
In 2021, the Australian Government provided $3 million to the Resilient Building Council (RBC) to develop the Bushfire Resilience Rating App and was delivered in October 2023. The app helps Australian households assess and improve their preparedness for bushfires.
Through the app, households can complete a self-assessment in around 20 minutes and receive a personalised list of recommended actions. Once upgrades are completed and certified by the RBC, households can provide their Resilience Rating Certificate to participating insurers, who may recognise the reduced bushfire risk in their pricing.
The Scheme has now reached an important milestone, with CommBank Insurance, provided by Hollard, and NAB Insurance, provided by Allianz, joining NRMA Insurance and Suncorp’s brands in recognising Resilience Ratings. This means approximately half of Australia’s home insurance market now recognises the program.
More than 63,500 households across 324 local government areas have completed home assessments. More than 19,000 households have taken at least three recommended actions, contributing an estimated $218 million in bushfire resilience upgrades.
Participating insurers are reducing the bushfire risk component of premiums by up to 60 per cent through the Resilience Ratings Scheme, with households reporting total premium reductions of between 5 and 21 per cent.
This is an important step for resilience-based insurance pricing in Australia. It shows that when households are supported to reduce their risk, the benefits can extend beyond safety and preparedness to improved insurance outcomes.
To build on this progress, the RBC app and Resilience Rating Scheme will be expanded to cover all natural hazards, including flood, storm and cyclone. This expanded capability is being trialled with 1,000 Queensland households, with 102 more local government areas across Australia on the waitlist to roll out Multi-Hazard Ratings in their communities.
Find out more or download the free Bushfire Resilience Rating App through the Resilient Building Council website.
