Hazardous Activity & Finance: Insurance, Lending, and Risk in 2025

Whether you’re a thrill-seeker, a tradesperson, or an adventurer at heart, hazardous activities can have a profound impact on your financial life. From bungee jumping and skydiving to working on mine sites or offshore rigs, the risks you take don’t just affect your safety—they shape your insurance premiums, loan applications, and even your superannuation benefits.

What Counts as a Hazardous Activity in 2025?

Australian insurers and lenders define ‘hazardous activities’ broadly, and the list is always evolving. In 2025, the term typically includes:

• Extreme sports (skydiving, base jumping, motocross, scuba diving beyond 40m)

• High-risk occupations (mining, oil & gas, construction, commercial fishing)

• Adventure travel (remote trekking, mountaineering, caving, expeditions)

• Operating heavy or dangerous machinery

• Activities in conflict zones or politically unstable regions

With the increase in adventure tourism and side hustles involving high-risk tasks, more Australians are discovering that what they do for fun or work can have unintended financial consequences.

Insurance in the Age of Adventure: Exclusions, Premiums, and Policy Changes

Life and income protection insurance have always come with a few strings attached, but recent trends and regulatory updates in 2025 have made things even more complex for those engaging in hazardous activities. APRA’s 2025 guidelines now require insurers to be more transparent about exclusions, but that doesn’t mean coverage is easier to secure.

• Premium loading: Expect higher premiums or additional excesses if you participate in high-risk pursuits.

• Exclusions: Many policies now have explicit exclusions for injuries or deaths resulting from specific hazardous activities, especially those not disclosed at the time of application.

• Shorter waiting periods: Some insurers are experimenting with shorter benefit periods for high-risk occupations or sports.

• Disclosure requirements: You must declare all hazardous activities upfront; non-disclosure can void your policy.

For example, if you’re a FIFO worker on a mine site and also enjoy weekend motocross, your insurer may factor both your job and your hobby into your risk profile. This could mean a 30%+ increase in life insurance premiums compared to an office worker, or a complete exclusion for any motocross-related injury.

Lending, Credit, and Superannuation: The Ripple Effects

Banks and lenders have also updated their risk assessment models in 2025, especially for home loans and personal lending. While hazardous activities rarely result in outright loan denials, they can trigger closer scrutiny or affect the terms you’re offered:

• Income protection requirements: Lenders may require proof of income protection insurance if your occupation is considered high-risk.

• Superannuation insurance: Default life and TPD cover within super funds is now less likely to include hazardous activity coverage, following the 2025 ASIC review.

• Interest rate adjustments: Some smaller lenders are factoring occupational risk into their rate calculations, especially for unsecured loans.

Case in point: a commercial diver applying for a mortgage in 2025 may need to provide additional documentation, face a slightly higher interest rate, or obtain specialist insurance to satisfy bank requirements. Meanwhile, if you work as a tradie and regularly undertake risky side jobs, your default super fund’s insurance might not cover you unless you opt for additional cover (which comes at a cost).

Smart Strategies for Australians Embracing Risk

There’s no need to curb your adventurous spirit, but savvy financial planning is crucial if you participate in hazardous activities. Here’s how to protect your finances:

• Always disclose your activities fully to insurers and lenders.

• Seek out specialist insurance providers who understand your activity or occupation.

• Review your super fund’s default insurance and consider topping up if you’re at risk.

• Budget for higher premiums or additional costs—don’t let a claim denial catch you off guard.

• Keep records of your safety training and certifications—they can sometimes help reduce insurance loadings.

With the financial landscape shifting in 2025, being open about your lifestyle—and proactive in managing the risks—can help you secure the protection and peace of mind you need.