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
![]() | Queensland's Persistent Flood Woes: A Call for Resilient Rebuilding 05 Feb 2025: Paige Estritori The recent floods in northern Queensland have left a significant mark, with the Insurance Council of Australia reporting 1,435 insurance claims following the heavy rains. As the weather slowly begins to clear, residents of Townsville have started returning home, heaving a sigh of relief as the city narrowly avoided severe flooding. - read more |
![]() | ACCC Scrutinizes Major Motor Insurance Mergers 05 Feb 2025: Paige Estritori The Australian Competition and Consumer Commission (ACCC) has opened a detailed examination into significant mergers in the motor insurance market. The acquisitions under review include Insurance Australia Group's (IAG) endeavor to acquire RACQ Insurance and Allianz Australia's agreement to purchase RAA Insurance. - read more |
![]() | Urgency in Financial Reform: A Call for Swift Action 04 Feb 2025: Paige Estritori Christine Cupitt, CEO of the Council of Australian Life Insurers, has strongly expressed the urgent need for rapid legislative reform in financial advice. With an upcoming election threatening to stall legislation, time is of the essence to ensure timely implementation. - read more |
![]() | North Queensland Faces Swift Response Amid Devastating Floods 03 Feb 2025: Paige Estritori North Queensland is grappling with severe floods due to torrential rains, prompting the Insurance Council of Australia (ICA) to declare the situation a significant event. The worst-hit regions include Townsville and Ingham, where the impact has been profound. - read more |
![]() | Why Income Protection Insurance is Essential for Every Australian Adult Income protection insurance is designed to provide financial support to individuals who are unable to work due to illness or injury. This type of insurance ensures that you continue to receive a portion of your income, allowing you to maintain your standard of living even when unexpected circumstances arise. - read more
|
![]() | How Tradespeople Can Maximize Tax Deductions Through Insurance Tradespeople work hard to earn their income, often facing unique expenses that can impact their bottom line. Understanding and maximizing tax deductions is crucial for minimizing these costs and keeping more of what they earn. By making informed decisions about expenses, tradespeople can significantly reduce their taxable income. - read more
|
![]() | Unexpected Illness & Injury: Navigating Financial Security for Your Family Life is an unpredictable journey filled with twists and turns that can challenge even the most prepared among us. Sudden illnesses and unexpected injuries are just some of the uncertainties that can disrupt the harmony of family life. The emotional turmoil brought on by these circumstances is often compounded by the financial strain they can cause. It's during these trying times that the true value of peace of mind becomes clear. - read more
|
![]() | Important Tips to Streamline Your Income Protection Claim in Australia In today's unpredictable world, securing your financial future is more important than ever. Income protection insurance plays a pivotal role for working Australians by providing a safety net in case illness or injury prevents you from earning an income. As an essential part of your overall financial planning, understanding income protection is crucial for peace of mind and stability. - read more
|