Australian Small Businesses Advocate for Insurance Premium Reforms
Addressing the Impact of Escalating Costs on SMEs
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In October 2025, the Australian Chamber of Commerce and Industry, in collaboration with the Insurance Council of Australia, released a report highlighting the significant challenges faced by small and medium-sized enterprises (SMEs) due to soaring insurance premiums.
The report emphasizes that many SMEs are compelled to either forgo insurance coverage or reduce their policies to remain financially viable in a challenging economic environment.
The escalating costs have led to calls for a coordinated national response to alleviate the burden on small businesses. Key recommendations from the report include:
Abolishing taxes on insurance policies to reduce overall costs.
Initiating a Productivity Commission review to assess small business insurance expenses.
Establishing a national support body dedicated to small business insurance and risk management.
Collaborating with insurers to develop tailored insurance products that meet the specific needs of SMEs.
Reforming civil liability laws to create a more balanced legal framework.
Andrew McKellar, CEO of the Australian Chamber of Commerce and Industry, stated that insurance should serve as a fundamental safety net for small businesses rather than becoming an unmanageable financial burden. He noted that numerous businesses have reported premium increases of 30% or more within a single year, underscoring the urgency for reform.
For Australian SMEs, this situation highlights the importance of proactive engagement with insurance providers and brokers to explore cost-effective coverage options. Additionally, staying informed about potential policy changes and advocating for reforms can contribute to a more sustainable insurance landscape for small businesses.
Published:Wednesday, 5th Nov 2025 Source: Paige Estritori
Please Note: If this information affects you, seek advice from a licensed professional.
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