A parliamentary inquiry into live music has called on the federal government to examine the viability of a self-insurance or mutual model to help reduce premium costs for event organisers. 

The House of Representatives Standing Committee on Communications and the Arts delivered the recommendation in its final report, which flagged rising insurance costs as a significant stressor on the live music scene.  

The report highlighted a sharp climb in public liability premiums following the pandemic, with the Australian Live Music Business Council reporting that some members saw their premium increase from $10,000 to more than $120,000.  

Stakeholder sentiment on the viability of government-funded support is mixed. The Insurance Council of Australia referred to the Victorian Managed Insurance Authority as an "obvious example" of how government could help events with their insurance.

The Australian Festival Association and Live Performance Australia also recommended “government-backed underwriting of public liability and cancellation insurance”.  

However, the Department of Infrastructure, Transport, Regional Development, Communications and the Arts told the committee that the government’s role was “not quite clear” as insurance is a commercial matter.  

“The insurance industry charges what they do so they can manage their risks, and we don’t get involved in that assessment,” Creative economy and the arts deputy secretary Stephen Arnott said.  

The committee also called for the government to provide information on managing live music events to help define ways to reduce risk.  

Further recommendations have been for Music Australia to partner with the Live Music Business Council and the ICA to create a self-assessment app that would provide a more detailed understanding of risk and allow for customised insurance pricing based on key risk drivers.  

The committee’s report has also called for better regulations for ticket sales, further examination into anti-competitive behaviour, and raised the possibility of a tax offset for the live music industry.  

Click here for the full report.