However, the best way to keep insurance costs down is to keep fossil fuel emissions down.

“Competition across big business sectors is needed, but the thing that is driving insurance costs is climate change,” said Richard Denniss, Executive Director at The Australia Institute.

“The more we heat the climate, the more expensive storms, floods and fires will be. That is what is driving costs.

“It is past time we taxed the fossil fuel companies to fund the damage that their previous emissions are already causing.”

Dr Denniss said the Australian economy has become less competitive over the last few decades and divestiture laws would go some way to addressing that structural imbalance, but the fossil fuel companies are to blame for rising insurance premiums.

“The introduction of divestiture laws is a sensible tool which would help stop large companies like Woolworths and Coles misusing their market power,” he said.

“But all around the world, climate change is increasing the costs of insurance and Australia is no exception.”