Farm Insurance NZ
According to the Insurance Council of Australia (ICA), the recent fires in the Grampians region led to approximately 134 insurance claims from December 17 to January 6, many of which pertain to business interruption rather than property damage. This situation has put the spotlight on the ongoing insurance accessibility and affordability issues faced by local businesses and residents.
A community meeting held in Halls Gap showcased these concerns, drawing attendance from local representatives, the ICA, the National Insurance Brokers Association, and the Rural Financial Counselling Service. Concerns about insurance coverage, particularly for bushfire-related incidents, dominated the discussions.
Anne Webster, the federal MP for Mallee, underscored the vital role of local businesses in the region's economy. She asserted, “Businesses are the ‘lifeblood’ of the region, but 'insurance is not stepping up and meeting the need of the community.'”
Dutton emphasized the existential threat that the lack of appropriate insurance coverage poses to businesses. He stated, “If they don’t have disruption insurance or liability insurance, they cannot operate safely or effectively. It's essential to address these uninsurable risks to facilitate business continuity.”
He further underlined that businesses unable to secure insurance face challenges in securing bank loans, leading to a cascade of negative economic impacts, including potential business closures and job losses.
Speaking on behalf of the ICA, Liam Walter, director for mitigation and extreme weather response, conveyed that the Grampians has a history of confronting such natural disasters. He noted, “This is the second significant fire event in 12 months. These events underscore the vulnerability of communities to natural disasters, intensified by Australia's harsh climatic conditions.”
Dr. Webster highlighted the steep rise in insurance costs, explaining that many businesses experienced cost increases fourfold after last year’s fires. Alarmingly, she added, “Most Halls Gap businesses tell me they can't secure insurance at all. I'm collaborating with residents and industry stakeholders to devise solutions. I appreciate Peter Dutton's commitment to advocating for policy developments at the federal level.”
The challenges underscore a broader, national debate on how to make insurance more attainable and equitable for all businesses, especially in disaster-prone areas. The Labor government's Insurance Affordability and Natural Hazards Risk Reduction Taskforce, introduced last year, is part of the ongoing efforts to address such issues, though stakeholders await actionable updates on its progress.
The original content, which informed this article, was reported by Insurance News on January 17, 2025.
Published:Wednesday, 22nd Jan 2025
Source: Paige Estritori
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