The Australian Amusement, Leisure and Recreation Association (AALARA) says an ombudsman review of the group’s plan for a discretionary mutual will provide information to the Federal Government as a solution for insurance problems is sought.

The group has been working with Aon on the prospects for a mutual to meet the needs of members, and last year made a submission to the Australian Small Business and Family Enterprise Ombudsman (ASBFEO) insurance inquiry.

Ombudsman Bruce Billson said on Friday a follow-up review of insurance issues facing the amusement, leisure and recreation businesses will build on the work of the earlier inquiry and independently assess the AALARA proposal.

“This review will use the Ombudsman’s internal expertise and seek external expert advice on complex issues, such as specialist legal, financial sustainability and actuarial matters,” he said.

The amusement and recreation sector’s submission to the ombudsman last year said 40 members that owned 297 pieces of plant between them had made only three claims in total, but only 40.5% of members had been offered renewal terms.

“ASBFEO’s review will provide vital information to the Government about the challenges our members are up against regarding insurance accessibility, as well as what that means for these businesses and what support could help address insurance issues faced by the sector,” President Shane Mr McGrath said on Friday.

A final report is expected to be completed in August.