The Insurance Council says the cost of insurance is going to rise across the board worldwide, following a string of natural disasters.
Global reinsurance companies are looking to recoup the cost of a series of disasters including the Japanese tsunami, floods in Queensland, and the Canterbury earthquakes.
The council's chief executive, Chris Ryan told Morning Report he does not know to what extent premiums will increase in this country, but the rise will take effect over the next couple of years.
He says the council is worried that people will be reluctant to take out insurance as prices go up.
