10 March 2022
“There’s no doubt that businesses need the ability to protect against catastrophic loss. Without these protections, business owners become personally liable which in turn makes NSW less globally competitive,” said Business NSW Chief Executive Daniel Hunter.
“As insurance premiums increase and risk becomes more ‘uninsurable’ or unaffordable through existing market mechanisms, we are at a moment when Government, partnered with industry, need to consider alternative models so that we remain globally competitive,” Mr Hunter said.
We are at a moment when Government, partnered with industry, need to consider alternative models so that we remain globally competitive.
“The NSW Government and business has led the world in financial service innovation, and we now have an opportunity to re-think how business can obtain coverage, price risk, and continue to thrive in a fast-changing world.
Business NSW is currently exploring ways to improve the system, whether it be through legislation, Discretionary Mutual Funds (DMFs), other insurance alternatives and other policy settings that ensure the sustainability and resilience of NSW businesses.
“We welcome market innovators to engage with us to drive this change.
“Our research suggests that the problem is much bigger than just insurance costs with wider trends around insurability presenting significant challenges for businesses globally. These trends include: