Insurance Australia Group chief executive Nick Hawkins says climate change is contributing to the upward pressure on premiums, alongside the La Nina weather pattern, as the company warned the price of home cover would jump by up to 10 per cent.

The company behind brands including NRMA Insurance and CGU was the latest insurer to predict more big jumps in premiums on Friday, as the industry passes on the costs of catastrophic flooding on the East Coast, supply chain woes, and higher reinsurance rates.

In its annual results, IAG said it was pushing through increases of 8 to 10 per cent in home insurance, and 7 to 9 per cent increases in car insurance, as the whole industry jacks up premiums sharply.

Hawkins said he expected home and motor premiums to continue rising at about this pace over the year ahead as inflation continued to affect the business. He also underlined the longer-term role of climate change.

“We know that at the same time as inflation, we’re having challenges with perils, and that doesn’t feel like that’s going to stop in the next few years either,” Hawkins said in an interview.

“We’re likely to see increased frequency and severity of events, which is adding, in our industry, to the pricing challenges and affordability challenges.”

Latest industry figures show this year’s flooding had led to $5.1 billion in insured losses, making it the second-costliest extreme weather event in Australia’s history after the 1999 hailstorm that battered Sydney.

Hawkins said climate change and shorter-term variations in weather were both affecting insurers.

The La Nina weather pattern had led to unusually high rainfall in eastern Australia recently, he said, and IAG expected “a fair bit of wet weather” over the next few months, though this was likely to diminish over the year ahead.