First Nations business owners grapple with insurance: Allianz
Just 21% of First Nations SMEs have general property insurance, compared with 42% for the broader SME sector, new research from Allianz has found.
Other key findings from the Allianz-commissioned research underscore the insurance challenges facing the Indigenous business community.
About 16% of First Nations SME owners say they do not have any insurance cover with the no-insurance take up rate even higher in less established businesses and the ones with smaller turnover, at 23% and 19% respectively.
Around 95% agreed insurance is a “must have” for their business but about half say there were probably things that they needed insurance for, but they were not aware of these requirements.
Allianz says the research, conducted by First Nations engagement consultancy Winangali, holds important findings for the insurer and also the industry.
“At Allianz we’re committed to contributing to an inclusive society, one in which all people – no matter their culture, background or ability – feel valued and have the opportunity to use their unique skills to reach their full potential,” GM Conduct and Customer Advocacy Sema Musson told insuranceNEWS.com.au.
“As an insurer, our purpose is to secure Australians’ futures; with diversity, inclusion, respect and ensuring a sense of belonging at the core of our culture.
“Our Reconciliation Action Plan is our pledge to work together with Aboriginal and Torres Strait Islander peoples, organisations and communities to support inclusivity and help build prosperity and security for what’s ahead.”
As part of its commitment, Ms Musson says Allianz has created the Home-Based Insurance Toolkit in collaboration with First Nations communications consultancy Iscariot Media to support Indigenous business owners.
The Toolkit is designed to help First Nations home-based small businesses understand the different types of insurance covers for their businesses and their homes.
“The Home-Based Business Insurance Toolkit includes information that is relevant to all small businesses operating from the home,” Ms Musson said.
“However, our research revealed that a quarter of First Nations small businesses surveyed were sole traders and more than 50% employed between 1-10 people, indicating a high proportion of micro-businesses in the sector.
“The research also showed that First Nations home-based small businesses are particularly vulnerable due to comparatively low general property insurance.
“For this reason, we created the Toolkit… with Iscariot Media to ensure it resonated with a First Nations audience.”