General insurance brokers want clearer guidance on the implementation of insurance industry support measures aimed at helping small business clients hit by the COVID-19 outbreak.

As previously reported, IAG launched a package of its own measures last week, before a joint scheme from Suncorp, QBE and Allianz was approved by the Australian Competition and Consumer Commission (ACCC) last night.

The measures, which are expected to also be taken up by other insurers dealing with the SME market, include the option for small businesses to defer premium payments for six months, which has left some brokers fearing for the future of their own operations as cashflow dries up.

The ACCC announcement last night says its “interim authorisation” applies to the three insurers “as well as any other insurers or insurance brokers who choose to take part, as long as they notify the ACCC”.

National Insurance Brokers Association (NIBA) CEO Dallas Booth said today that insurance brokers are required to notify the ACCC in advance if they wish to participate.

“There are a number of aspects of the ACCC authorisation, and the insurer proposal, that will need to be clarified,” he said.

“Most importantly, the need for insurance brokers to notify the ACCC before participating in the program needs to be clarified.

“NIBA is making inquiries about how this is intended to occur and what procedures will need to be followed.”

The insurers’ measures have caused some confusion for brokers, with some raising concerns about how the six month deferral can work in practice.

“What happens at the end of the six months?” one broker asks in an email to insuranceNEWS.com.au.

“Clearly a business which possibly hasn’t been trading 100%, if at all, would then need to come up with 12 months’ premium and only have six months to pay.

“Clients would be better served if insurers froze premium increases.”

NIBA says it will provide further information to brokers as soon as it becomes available.