Solutions to insurance problems faced by companies in the coal sector must be found, as the local fossil fuel remains a key part of the global energy mix and the transition to renewables will take decades, resource industry executives have told a parliamentary inquiry.

Whitehaven Coal CEO Paul Flynn says the industry is exploring self-insurance options due to problems gaining cover, while the Resource Industry Network, which includes engineering and service companies, flagged mutual insurance as a possible option.

“I am aware of some industries using mutual funds, so putting together a fund, to be the first receiver of the risk, which can then go and buy reinsurance, rather than a conventional insurance policy,” network Chairman and GM at Field Engineers David Hartigan said.

Resource Industry Network GM Dean Kirkwood said alternative options available to industry associations may offer a solution before it becomes necessary for any direct government support system.

Executives appearing on Friday before the Joint Standing Committee on Trade and Investment Growth inquiry into the prudential regulation of investment in Australia’s export industries were asked whether insurance should be mandated as an essential service, with obligations around providing it to lawful operations.

The Australian Small Business and Family Enterprise Ombudsman insurance report released last year said it is working on an essential service regime, and insurance would form a “critical component” of its investigations.

“It is definitely an essential service,” Mr Kirkwood said. “To be able to service the mining companies you have to have key levels of insurance.”

Queensland Resources Council CEO Ian Macfarlane said the group supports the Paris Agreement and emissions’ reductions targets, but bank and insurer actions are hurting mining, engineering and technology services (METS) firms that are also involved with renewables.

“The irony is that by restricting the ability of METS businesses to renew their insurance policies and access finance, these lenders and insurers are threatening the viability of the very sector that will play a leading role in Queensland’s transition to a low-emissions future,” he said.

Future hearings as part of the inquiry are expected to feature financial institutions, government agencies and other stakeholders.

The committee is chaired by MP George Christensen, who has announced he won’t recontest his seat of Dawson, which includes the Abbot Point facility at Mackay that services metallurgical and thermal coal mining projects.