A major insurer is warning Australians to expect rising home insurance premiums, in part due to increasingly frequent and damaging weather events.

A report from IAG found the risk to communities has increased as the climate warms, with severe storms, including hailstorms, predicted to hit the most populated regions in the southern parts of Australia.

IAG's chief financial officer William McDonnell told The Business that climate change would play an increasing role in the rising premiums unless urgent actions were taken.

"The price of insurance is driven by a whole range of factors, including the costs of repair, which have been increasing, regardless of natural perils.

"But the component that relates to natural perils … that is gradually increasing, particularly in the areas that are m

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