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Ai Group calls for government intervention on hard market

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Ai Group is urging the federal and state governments to act to address the persistent hard market which is leaving many businesses facing “insurance stress”.

The group has carried out a survey that finds many members have been affected by price spikes, reduced coverage or an inability to secure insurance at all.

More than half of the 107 respondents – mostly medium-sized businesses – reported “unusual trouble” seeking insurance in the past 12 months. High premium growth was the most frequently reported problem.

One business reported a more than three-fold premium increase with the excess going from $100,000 to $250,000, and the premium from $224,000 to $757,000.

Ai Group CEO Innes Willox says COVID-19 could further exacerbate the situation, with impacts still playing out across workplaces and communities.

“A competitive market environment where adequate and affordable insurance is within reach is in everyone’s interest – and an important foundation for Australia’s economic recovery,” Mr Willox said.

“Without insurance, it becomes nearly impossible to operate, and as we recover from the COVID-19 pandemic we need to seek to reduce costs and participation barriers for business.

“It is clear insurance is a growing concern for industry, and therefore it should be a growing concern for government too.”

See Analysis.