The Caravan Industry Association of Australia (CIAA) has released a five-point industry approach outlining efforts to collaborate with insurers to help solve affordability and accessibility challenges. 

The advocacy group says the plan, which encourages industry-wide engagement with insurance groups, brokers, government bodies and other stakeholders, aims to improve education on caravan-specific issues as the industry continues to be plagued by soaring insurance costs. 

The roadmap delivers actions for industry members to focus on, highlighting “key strategy areas” relating to data collection, accreditation programs, developing technologies, risk profiling, and insurance sector education. 

CIAA says the approach comes at a time where caravan park operators must “take the lead” on advocating for improved insurance options, with policy premiums rising by 15 to 20% on average across the industry.

“In the years leading up to 2019, the caravan park industry experienced highly favourable conditions in the insurance market,” CIAA said.

“As a result, operators were able to obtain insurance coverage at affordable prices without the need to extensively assess the risks and liabilities associated with their properties.

“However, it has become apparent through interactions with the Federal Government, insurance sector, and caravan park operators who are able to obtain coverage that current market conditions now demand a heightened level of risk and liability mitigation.”

The advocate group highlights a lack of “direct engagement with the local contexts and challenges” of Australian operators from Euro-centric market analysers as a cause for gaps in risk knowledge. 

It says the industry must ensure it is taking steps to address stigmas and “incorrectly applied assumptions” on products such as jumping pillows. 

“The assessment process has been frustrating for operators, as some have been denied insurance solely based on being classified as a caravan park,” CIAA said.

“Interestingly, rebranding as 'cabin parks' has led to renewed insurance options, highlighting the inconsistency in the evaluation process.” 

Insurance Council of Australia CEO Andrew Hall backed measures listed in the roadmap, commenting in response to CIAA CEO Stuart Lamont’s LinkedIn announcement.

“Demonstrating active measures to reduce risk is the first step in getting insurance issues under control,” Mr Hall wrote on LinkedIn.

“This is a comprehensive set of measures and we will promote your actions internally to our members here at the Insurance Council of Australia.”