❓ A WA parliamentary question addresses the rising cost and availability of public liability insurance for crowd control services, impacting events and related businesses. The government acknowledges the issue, attributing it to global market forces, and highlights advocacy efforts at a national level.
AnsweredQoN 1027Legislative Council
QuestionView source ↗
PUBLIC LIABILITY
INSURANCE — CROWD CONTROL SERVICES
1027. Hon SIMON O'BRIEN to the minister representing
the Minister for Small Business:
This question was initially
addressed to the Minister for Commerce, but apparently it was switched over.
I refer to advice received from a business
that provides crowd control services to many of the largest and most
prestigious events in the south west to the effect that they are now unable to
get public liability insurance and must cease operating.
(1) Can the
minister update the house on the situation regarding the availability of public
liability insurance?
(2) What are the
implications for sundry other businesses that rely on events if crowd control
services are not available?
(3) What is the
government doing to ensure continuity of access to public liability insurance
for security companies?
INSURANCE — CROWD CONTROL SERVICES
1027. Hon SIMON O'BRIEN to the minister representing
the Minister for Small Business:
This question was initially
addressed to the Minister for Commerce, but apparently it was switched over.
I refer to advice received from a business
that provides crowd control services to many of the largest and most
prestigious events in the south west to the effect that they are now unable to
get public liability insurance and must cease operating.
(1) Can the
minister update the house on the situation regarding the availability of public
liability insurance?
(2) What are the
implications for sundry other businesses that rely on events if crowd control
services are not available?
(3) What is the
government doing to ensure continuity of access to public liability insurance
for security companies?
AnswerView source ↗
I
thank the member for the question. The following information has been provided
by the Minister for Small Business.
(1) On the back of complaints raised earlier this year
from adventure tourism operators, among others, about losing access to public
liability cover, the Small Business Commissioner undertook a preliminary
assessment into the insurance market
in Western Australia. The investigation identified that given the global
hardening of the market, a range of Australian insurers were no longer willing
to provide cover for certain activities or set premiums far higher than what
was considered reasonable in areas of high risk. It is not a situation unique
to WA or even Australia. However, due to a hardening of the market
internationally, global underwriters in London are making decisions on a when-it-occurs
basis as oppose to an if-it-occurs basis. This has resulted in premiums in a range
of insurance classes escalating sharply and products being withdrawn. Following
advocacy by the Small Business Development Corporation on 28 July 2020, the
Australian Small Business and Family Enterprise Ombudsman launched a national
inquiry into practices of the insurance industry impacting small
business and whether insurance products are fit for purpose. Having received
over 800 responses from small businesses to an online survey, ASBFEO is due to
report in early December.
(2) This is an
unfortunate by-product of global policy settings. The McGowan government
continues to work with the Australian government to consider how businesses can
be best supported to ensure their ongoing survival as the economy transitions
into post-COVID-19 recovery. This will require national solutions to an issue
that affects business around the country.
(3) The McGowan
government recognises that the insurance market operates on a global basis and
that it is not necessarily the role of government to intervene in such
commercial arrangements. However, advocacy at
a national level, through the Western Australian Small Business Commissioner,
continues on this serious issue. Ultimately, the regulation of the
insurance sector is the responsibility of the federal government and federal
agencies like the Australian Prudential Regulation Authority.
thank the member for the question. The following information has been provided
by the Minister for Small Business.
(1) On the back of complaints raised earlier this year
from adventure tourism operators, among others, about losing access to public
liability cover, the Small Business Commissioner undertook a preliminary
assessment into the insurance market
in Western Australia. The investigation identified that given the global
hardening of the market, a range of Australian insurers were no longer willing
to provide cover for certain activities or set premiums far higher than what
was considered reasonable in areas of high risk. It is not a situation unique
to WA or even Australia. However, due to a hardening of the market
internationally, global underwriters in London are making decisions on a when-it-occurs
basis as oppose to an if-it-occurs basis. This has resulted in premiums in a range
of insurance classes escalating sharply and products being withdrawn. Following
advocacy by the Small Business Development Corporation on 28 July 2020, the
Australian Small Business and Family Enterprise Ombudsman launched a national
inquiry into practices of the insurance industry impacting small
business and whether insurance products are fit for purpose. Having received
over 800 responses from small businesses to an online survey, ASBFEO is due to
report in early December.
(2) This is an
unfortunate by-product of global policy settings. The McGowan government
continues to work with the Australian government to consider how businesses can
be best supported to ensure their ongoing survival as the economy transitions
into post-COVID-19 recovery. This will require national solutions to an issue
that affects business around the country.
(3) The McGowan
government recognises that the insurance market operates on a global basis and
that it is not necessarily the role of government to intervene in such
commercial arrangements. However, advocacy at
a national level, through the Western Australian Small Business Commissioner,
continues on this serious issue. Ultimately, the regulation of the
insurance sector is the responsibility of the federal government and federal
agencies like the Australian Prudential Regulation Authority.
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