Business NSW, the peak business body of New South Wales, has sounded the alarm that insurance premiums are “spiralling out of control.”
Business NSW’s latest quarterly Business Conditions Survey has revealed that 78 per cent of businesses in NSW have seen double-digit increases in their insurance premiums over the past year, with one in three businesses saw premiums rise by 30 per cent or more, which is well above the 2.5 per cent inflation rate for the year to January.
CEO Daniel Hunter stated in no uncertain terms that businesses are fed up with having the highest-taxed insurance premiums in mainland Australia.
“The NSW Government is collecting more than ever through the Emergency Services Levy (ESL) and stamp duty,” Hunter explained. “This leaves businesses to either foot the bill or simply go without insurance and hope for the best. Many others have been flat-out rejected by insurance companies.”
He added, “On top of this, the Federal Government is sending an ever-increasing proportion of GST revenue to WA because of a terrible deal approved by both sides of federal politics.”
The findings only add to the grim situation among NSW businesses concerning their insurance coverage. A December survey of Business NSW members found that 64 per cent were not fully insured against catastrophic events.
Hunter also noted that insurance premiums have been the top financial concern for businesses for nearly two years. “Many NSW businesses now find themselves either uninsurable or unable to afford the soaring cost of insurance. You can’t run a business when your premiums increase by 30 per cent or more in a year,” he commented.
In order to address the insurance crisis among businesses, Business NSW has been calling for urgent reform of the business insurance system.
“The state and federal governments need to step up and do something now,” Hunter said. “Businesses are struggling because of rising premiums, and it’s simply unsustainable.
“If we don’t get this under control, the entire economy will feel the impact,” he concluded.
