Residents in Wagga Wagga, New South Wales, are demanding an investigation into insurance pricing practices following substantial premium increases that appear inconsistent with recent flood risk mitigation infrastructure. The inquiry comes despite the completion of a $23 million levee upgrade designed to protect the city from one-in-100-year flood events.
The NSW city completed its levee system upgrade in 2020 and incorporated the improvements into the National Flood Insurance Database. The last recorded flood in Wagga Wagga’s central business district occurred in 1956, more than half a century prior to the levee completion.
Nevertheless, homeowners have reported renewal premium increases that suggest the infrastructure improvements have not translated into reduced insurance costs. David Malligan told ABC that he experienced a particularly significant adjustment, with his annual renewal rising to nearly $9,000 in 2025 from just over $500 in 2024. After approaching approximately eight insurance providers, Malligan could not locate alternative coverage below several thousand dollars.
Local broker Georgina Brown characterises the situation as a systemic issue. “Among the four or five insurers we have that issue home insurance, I would say that the premiums have gotten worse in the last five years. It definitely seems to be a whole-market approach,” she said, as reported by ABC.
Scott Sanbrook, chief executive officer of advocacy group Committee 4 Wagga, has articulated resident frustration regarding the disconnect between protective infrastructure and pricing. “We’ve received a lot of feedback from residents. They ask, ‘Why am I paying more money than ever before, when the CBD is safer than it ever has been?’” he said.
The apparent inconsistencies in risk assessment methodology have generated calls for industry review. Brown reported significant geographical disparities in premium calculations. A property in the Wagga CBD yielded a quote exceeding $15,000, whereas the same broker obtained a quote below $5,000 for a Shepparton address in an area that experienced flooding within the past three years.
When comparing properties across regions, comparable discrepancies emerged. A Lismore property – acknowledged as a flood hotspot and affected by 2022 flooding – generated an online quote of just over $9,427, approximately $500 more than the figure quoted for the Malligans’ Wagga residence, which has remained unaffected by flooding for approximately 70 years. “There definitely is something not working correctly in the background,” Brown said.
Brown has advocated for enhanced disclosure. “Personally, I’d like to see a bit of an overhaul and a lot more transparency from the insurers on how they have arrived at their pricing. Many will send their renewal schedules out where it’ll say, ‘If you want information on how we’ve arrived at your premium, give us a call,’ but that really doesn’t result in much enlightenment,” she said.
Premium increases are not confined to Wagga Wagga. Survey data shows approximately 75% of Australian homeowners anticipate premium increases within the next 12 months. A nine.com.au poll of 546 participants determined that more than half had already absorbed increases during the preceding year, including properties unaffected by natural disasters.
National data indicates average annual home and contents insurance premiums increased from $2,452 to $2,795 over the past year – a 14% adjustment. Certain regions experienced increases reaching 17%, or $700 annually.
According to ABC, NRMA Insurance stated that Wagga pricing underwent modifications during and preceding levee completion, with local premiums decreasing on average by up to 33%. Allianz reported reviewing flood premiums using government maps, external datasets, and flood risk modelling. QBE acknowledged rising costs attributed to increasing weather event severity, elevated global reinsurance costs, and inflation. The Insurance Council of Australia (ICA) stated the levee upgrade was fully incorporated into the National Flood Information Database, a tool insurers use for flood risk assessment.
