Mutual designer Picnic Labs is progressing with its proposed scheme for small business service providers to the resources sector.

CEO Charles Pollack told insuranceNEWS.com.au that exploratory work in relation to small business customers’ needs has been completed and it is ready to take the idea "to the next stage, which would be to gather data and the preparation of a business plan to validate feasibility”.

Underwriters’ withdrawal from the coal industry is “ESG -driven”, he says – referring to insurers’ Environmental, Social and Governance policies.

“It’s nothing to do with the risk, and it’s very insurable,” he said. “This means a mutual could work and it’s one of the best examples of a community coming together to protect its interests.”

Asked about climate concerns and any possible negative reaction to Picnic’s involvement, Mr Pollack says “we don’t believe it is a reason for the industry not to do it”.

He compares Picnic to a boatbuilder and says if a party approaches Picnic requesting assistance then they are likely to engage.

“We just build the boat and put it in the water,” he said.

He also says service companies might only do 10% of their work with the fossil fuel industry but some are unable to get insurance for the entirety of their operations at the moment.

“It is now about engaging with select groups to really drive this forwards,” he said.