Business NSW says insurance premiums are “spiralling out of control”, leaving companies exposed and underscoring an urgent need for reform.

A survey found 64% of group members are not fully insured against catastrophes and nearly 80% have seen double-digit rate increases over the past year. 

A “staggering” one in three businesses endured premium rises above 30%.

Business NSW CEO Daniel Hunter says the state government collects more than ever through the emergency services levy and stamp duty on insurance, and businesses are fed up with having the highest-taxed premiums in mainland Australia.

They are forced to “either foot the bill or simply go without insurance and hope for the best”, he says. 

Insurance premiums have been the leading financial concern for businesses for nearly two years, according to Mr Hunter. 

“The state and federal governments need to step up and do something now. Businesses are struggling because of rising premiums, and it’s simply unsustainable,” he said.

“You can’t run a business when your premiums increase by 30% or more in a year. If we don’t get this under control, the entire economy will feel the impact.”  

The Insurance Council of Australia has argued the NSW emergency services levy on insurance should be removed as soon as possible. Analysis it published last year found that levy, GST and stamp duty added an average of $305 to home and contents policies, $766 to commercial building and contents, and $1200 to commercial building.

ICA says the emergency services levy disproportionately burdens those least able to afford it and does not fairly reflect the potential need for emergency services.

The NSW government has committed to removing the levy and is consulting on transition arrangements and a replacement model.