Climate change could put insurance out of reach for many Australians

The financial industry regulator says insurers may be able to pay future claims, but fewer people will be able to secure coverage

Millions of Australians could be left uninsured as the effects of climate change put increasing pressure on the financial system, the industry's regulatory body has warned.

The Australian Prudential Regulatory Authority (Apra) executive director Dr Sean Carmody told a Senate hearing on Tuesday the nation's insurers and banks were taking steps to prepare for worsening bushfire seasons and more extreme weather events.