When Disaster Strikes: The role of insurance in the well-being of older Australians

With trends towards financialisation and privatisation, houses are increasingly relied upon for material security and welfare sustainability, and householders are increasingly dependent on their own private insurance to maintain this security and welfare. These trends coincide with rising population levels, and increased demand for housing and wealth in areas at risk of natural disasters, and predicted increases in the frequency and intensity of natural disasters due to climate change. In this paper, we draw on new survey data to consider how older Australians are faring in the context of disasters, and in relation to a key mechanism for disaster recovery – house and contents insurance. We describe the rates of non-insurance and under-insurance for this cohort, and key predictors of vulnerability. Drawing upon in depth interviews with residents of areas at risk of bushfires, we consider the complex, and sometimes non-fiscal reasons why people do or do not have insurance, or are under-insured. I conclude with suggestions for further research and policy development.