ACT Targets Rising Insurance Costs with Comprehensive Inquiry
ACT Targets Rising Insurance Costs with Comprehensive Inquiry
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The Australian Capital Territory (ACT) is launching a thorough investigation into the escalating insurance costs that have been a cause for concern for businesses and community organizations.
This inquiry aims to shed light on the factors contributing to rising premiums and their broader impact.
Driven by the Legislative Assembly’s Standing Committee on Economics, Industry, and Recreation, the inquiry will explore several pivotal issues, including how insurance costs in the ACT measure against those in other regions, with a keen focus on workers' compensation and climate change impacts. "We are particularly interested in suggestions for improving the insurance sector to make it easier for small businesses and organisations to operate in the ACT," said committee chair Taimus Werner-Gibbings.
The investigation is set to delve into important topics like public liability claim trends, litigation behaviors influencing premium costs, and the challenges non-governmental and community projects face in accessing insurance coverage.
Part of the inquiry will also evaluate how insurance entities assess risks and consider public and private sector efforts in risk reduction. This is especially pertinent for community sports, recreation, and the creative arts when using government venues and facilities, as these requirements significantly affect their operations.
Additionally, the inquiry will examine models for offering public sector policies to community organizations, extending the scope to those that operate across state lines or on an international level.
According to the Canberra Business Chamber, there’s been a pressing need for action regarding insurance costs, which have been soaring to levels that many companies find unsustainable. "Increases in insurance premiums ultimately translate into price increases for customers and make it harder for businesses to operate sustainably," remarked CEO Greg Harford.
The chamber highlighted in its September-quarter Canberra Business Beat report that 44% of surveyed businesses experienced premium hikes exceeding 20% over two years, with these increases surpassing inflation rates.
Mr. Harford pointed out that although insurance costs are generally concerning, workers' compensation in the ACT stands out as particularly troublesome. "The chamber is hearing about huge price hikes for workers’ compensation insurance, and members report that it is substantially more expensive here in the ACT than in NSW or other jurisdictions," he added, noting the competitive disadvantage this creates for ACT-based businesses compared to those in other states.
Submissions for the inquiry are open until March 14, with the committee yet to announce when the findings will be reported.
The source of this information is from previous reports and statements, including insights from Greg Harford of the Canberra Business Chamber.
Please Note: We do not endorse any specific products or companies. Some content is sourced from third parties, including press releases, and may not be independently verified for accuracy or completeness.
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Knowledgebase
Premium: The amount paid for an insurance policy, usually on a regular basis, to maintain coverage.
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