ACT Targets Rising Insurance Costs with Comprehensive Inquiry
ACT Targets Rising Insurance Costs with Comprehensive Inquiry
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.
Published:Tuesday, 28th Jan 2025
Source: Paige Estritori
Share this news item:
| Financial Strain Forces Australians to Reevaluate Life Insurance 30 Jan 2025: Paige Estritori The rising cost of living is compelling Australians to view life insurance less as a safeguarding asset and more as an unnecessary liability. This trend emerges amidst a confluence of economic challenges including escalating inflation, increasing interest rates, and notable shifts in population demographics, according to David Sarkis, the CEO of iExtend. - read more |
| ACT Targets Rising Insurance Costs with Comprehensive Inquiry 28 Jan 2025: Paige Estritori 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. - read more |
| Insurer Penalized for Mishandling Storm Damage Claim 23 Jan 2025: Paige Estritori In a recent development, Auto & General has been instructed to both apologize and compensate a Brisbane property owner with a $2000 payment after an inadequate review of his storm damage claim led to an initial denial of coverage and subsequent policy cancellation. - read more |
| Travel Insurance Dispute Highlights Pre-Existing Condition Clause 22 Jan 2025: Paige Estritori In a recent case that underscores the importance of understanding insurance policy clauses, a man who cut short his vacation in the United States to be with his terminally ill sister-in-law has been denied an insurance payout. The ruling, made by the Australian Financial Complaints Authority (AFCA), favored the travel insurer due to the claimant’s lack of coverage for pre-existing medical conditions of relatives. - read more |
| Dutton Calls for Urgent Solutions as Insurability Crisis Hits Halls Gap 22 Jan 2025: Paige Estritori Peter Dutton, the leader of the Coalition, voiced pressing concerns over the growing issue of 'uninsurable risks' during a recent visit to the fire-stricken tourist town of Halls Gap in Victoria. The picturesque location, frequently visited by tourists, experienced significant bushfire disruptions over the Christmas holiday, highlighting broader insurance challenges. - read more |
| Understanding Life Insurance: How to Determine Coverage Amounts Life insurance is a cornerstone of financial planning, offering peace of mind to you and security for your loved ones. It's a contract between you and an insurance company: in exchange for regular premiums, the insurer agrees to pay a sum of money to designated beneficiaries upon your passing. This vital tool ensures that your family's financial needs can be met during an incredibly difficult time. - read more
|
| The Importance of Comparing Health Insurance Extras for Maximum Savings Health insurance is more than just a precautionary measure; it's a vital component in managing both your health and financial well-being. In Australia, where healthcare costs can quickly escalate, health insurance extras serve as a buffer, ensuring that services like dental, optical, and physiotherapy remain within reach. These extras can significantly reduce the out-of-pocket expenses you might otherwise encounter for non-hospital treatments. - read more
|
| Life Insurance: How much is enough? When considering life insurance, you're planning and preparing for an event that most of us would rather not think about. But life insurance represents a critical step in managing your personal finances and ensuring your family's well-being. - read more
|
| Common Mistakes to Avoid When Comparing Life Insurance Policies Choosing the right life insurance policy is one of the most important decisions for Australians, especially for those who are middle-aged or older. Life insurance provides financial security for your loved ones in the event of your passing, ensuring that they are not burdened with financial hardships. - read more
|
| Income Protection Insurance: A Lifeline for Self-Employed Aussies Income protection insurance is a vital financial safety net designed to support individuals who find themselves unable to work due to illness or injury. It provides a replacement income stream, cushioning the financial blow when life throws unexpected challenges your way. For self-employed Australians, who don't enjoy the same benefits as salaried employees—like sick leave or employer-funded superannuation—income protection becomes even more essential. - read more
|
A very broad term for insurance covering liability exposures for individuals and business owners. It provides broad coverage, generally including all exposures for property damage and bodily injury.