The Queensland solution: bulk-buying insurance
Many small groups hit hard by the public liability issue are being encouraged to adopt a solution being investigated by major airlines in the US and Europe – pooling the risk and buying cover in bulk. Queensland Premier Peter Beattie’s public liability insurance taskforce came up with the plan to use his government to coordinate insurance negotiations. Mr Beattie believes other state governments should consider the strategy, which was presented to his cabinet yesterday.
It’s not quite what the Insurance Council wants – it is focused on a national solution, and hopes the causes as well as possible solutions will be examined by the Coonan summit – but it does offer some relief for communities around Australia that can no longer afford insurance to cover local events. But as Mr Beattie noted yesterday: “We are going to put pressure on insurance companies to make it work.”