The Morrison-Joyce Government’s failure to act on the growing dysfunction in key insurance markets has left too many small and medium businesses (SMEs) exposed and jobs at risk.
The Insurance Council of Australia’s (ICA) latest report into the role of the private commercial insurance market undertaken by industry expert John Trowbridge highlights the pressures small businesses face when it comes to getting vital insurance cover.
The ICA Trowbridge report shows there has been sustained pressure building in private insurance markets with Australian businesses in many industries now struggling with unaffordable premiums.
This includes the professional indemnity, public liability and business interruption products that are essential for the stability and growth prospects of small businesses across Australia.
Rising premiums have left too many local businesses on the brink of collapse because of the uncertainty around access to these key insurance protections.
The ICA’s Trowbridge report again puts the focus on the lack of affordability or availability in some market segments for small businesses who need insurance cover to keep their businesses open and workers employed.
SMEs operating caravan parks, adventure parks and carnivals have been left particularly exposed while the fallout has also impacted building professionals and financial advisers.
The Morrison-Joyce Government has been no friend of SMEs in Australia and has again left them to fend for themselves instead of addressing the affordability crisis in the insurance sector.
The Treasurer still has not responded to the ACCC’s recommendations regarding affordability in the Northern Australian insurance market, ignoring the concerns of households and small business in the region.
Businesses struggling with the impacts of the COVID pandemic and natural disaster must not be forced to close because of yet more inaction from the Morrison-Joyce Government.
