Home / Local / Ai Group calls for government intervention on hard market
26 October 2020
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.”