Sporting organisation AusCycling has told members it will need to introduce a special insurance levy due to the impact on its budget from an unexpected surge in public liability premium costs. 

In an email sent to members AusCycling says the annual membership fees will increase by 10% from July 1 while an additional insurance levy of $35 per adult and $15 per child will also be added at renewals, which is directly related to the increased cost of public liability cover across 2023/24. 

“You may be aware of the March increase in AusCycling’s public liability insurance, which saw the premium increase by $1.6 million across the next 12 months,” an email notification seen by insuranceNEWS.com.au says. 
 
“While part of this increase is due to general rises in the cost of insurance, it is largely due to historical understatement of claims by third parties which has dramatically altered the premium structure.” 

The notification says the group’s budget had assumed a small increase in the premium rather than the size that was eventually required to ensure cover remained in place. 

AusCycling was formed in 2020, bringing together several separate organisations. It’s responsible for the development, facilitation and growth of all forms of cycling, ranging from grassroots recreational and commuter levels through to high performance. 

The group represents more than 54,000 members and 400 cycling clubs including BMX, mountain bike, para-cycling, road, track and lifestyle riders, according to its website. 

The emailed message also says AusCycling has established an internal Insurance Project Group that in consultation with a club advisory group, will review the structure of the insurance program and provide recommendations.