Business NSW Advocates for Urgent Insurance Reforms to Alleviate Rising Premiums
State's Peak Business Body Highlights the Impact of Soaring Insurance Costs on Local Enterprises
0
The information on this website is general in nature and does not take into account your objectives, financial situation, or needs. Consider seeking personal advice from a licensed adviser before acting on any information.
Business NSW, the leading business advocacy group in New South Wales, has raised alarms over the escalating insurance premiums that are placing significant financial strain on businesses across the state.
Recent findings from their Business Conditions Survey reveal that nearly 80% of businesses have encountered double-digit increases in insurance costs over the past year, with one in three reporting hikes of 30% or more.
These surges starkly contrast with the annual inflation rate of 2.5%, underscoring the disproportionate burden on the business community.
Daniel Hunter, CEO of Business NSW, attributes these steep increases to a combination of factors, notably state and federal taxation policies. The Emergency Services Levy (ESL) and stamp duty in NSW are particularly impactful, contributing to the high premiums that businesses are compelled to pay. Hunter warns that the current trajectory is rendering many businesses uninsurable or unable to afford adequate coverage, exposing them to substantial financial risks in the event of natural disasters or unforeseen incidents.
The survey further highlights a concerning statistic: 64% of NSW businesses are not fully insured against catastrophic events. This gap in coverage underscores the urgent need for comprehensive policy reforms to ensure that businesses can access affordable and sufficient insurance protection.
In response to these challenges, the National Insurance Brokers Association (NIBA) has put forward several recommendations aimed at enhancing insurance accessibility and affordability:
Expansion of the Disaster Ready Fund (DRF): NIBA suggests extending the DRF into a rolling ten-year program to provide consistent and long-term funding for disaster mitigation projects. This proactive investment in high-risk areas is intended to reduce the overall impact of natural disasters and help stabilize premium costs.
Introduction of a National Household Mitigation Scheme: A co-funded initiative between federal and state governments is proposed to support homeowners and small businesses in implementing property-level resilience measures. By retrofitting properties to withstand cyclones, bushfires, and floods, the scheme aims to significantly reduce damage costs and subsequent insurance claims.
Establishment of an Advisory Committee on Emerging Risks: Given the evolving landscape of risk exposure, including cyber threats and geopolitical instability, NIBA recommends forming a government-backed advisory body. This committee would assess and mitigate emerging risks, ensuring that businesses are equipped with the necessary tools and guidance to navigate the changing insurance environment.
These measures represent a critical investment in Australia's future, aiming to strengthen community resilience, improve insurance affordability, and enable businesses to thrive amidst growing challenges. Business NSW and NIBA are committed to collaborating with the government to achieve these essential reforms and create a more resilient future for all Australians.
Published:Thursday, 12th Feb 2026 Source: Paige Estritori
Please Note: If this information affects you, seek advice from a licensed professional.
The Australian Financial Complaints Authority (AFCA) has recently ruled against Zurich Insurance, instructing the insurer to maintain the current income protection benefits for a policyholder after an 11-year delay in proposing a reduction. This decision underscores the critical importance of timely and transparent communication between insurers and their clients. - read more
In the 2025 Life Insurance Awards presented by Money Magazine, Neos has been honored as the top provider in the Income Protection Insurance category. This accolade reflects Neos's commitment to delivering comprehensive and reliable income protection solutions to Australians. - read more
Marina operators in Northern Australia are confronting a significant crisis as insurance premiums escalate dramatically, with some experiencing increases exceeding 300% over recent years. This surge in costs is placing immense financial strain on the industry, prompting urgent calls for government intervention. - read more
As global trade dynamics undergo significant shifts, GT Insurance is reaffirming its commitment to supporting marine clients navigating these challenges. The recent imposition of US tariffs-25% on Australian steel and aluminium, and 10% on other exported goods-has introduced new uncertainties for local exporters, particularly in sectors like beef and bulk freight. These tariffs, effective from April 5, 2025, have prompted concerns about declining export volumes and reduced freight margins. - read more
This website is owned and operated by Clark Family Pty Ltd (ACN 010 281 008) as Trustee for the Clark Family Trust (ABN 35 957 893 714), 43 Larch Street Tallebudgera QLD 4228. Clark Family Pty Ltd is an Authorised Representative (AR 1298860) of Unique Group Broker Services Pty Ltd (AFSL 509434) for financial product referrals and an Authorised Credit Representative (ACR 401491) of Saccasan Pty Ltd (ACL 386297). Check our licensing details on the ASIC registers: Clark Family Pty Ltd ACR, Clark Family Pty Ltd AR, Saccasan Pty Ltd, Unique Group Broker Services.IMPORTANT: We do not provide financial product advice or credit assistance. We act solely as an introducer and refer enquiries to licensed third-party intermediaries, insurers, and lenders - with whom you can then deal directly. We may receive a fee or commission from these third parties in consideration for the referral. Before any action is taken to obtain a product or service referred to by this website, advice should be obtained (from either the third party to whom we refer you or from another qualified intermediary) as to the appropriateness of obtaining those products having regard to your objectives, financial situation and needs. Whilst we have our own process for validating the legitimacy of our referral partners, you should always verify the credentials of your financial adviser before proceeding with recommendations that they may present. Visit the ASIC website for further information.
Web design and construction by:
Clark Family Pty Ltd
A.C.N. 010 281 008 Copyright 2004 - all
rights reserved