The Small Business Ombudsman’s insurance inquiry report was released today, which backs the resolution measure I have been calling for - the introduction of a re-insurance pool.

This report from Australian Small Business and Family Enterprise Ombudsman (ASBFEO) Kate Carnell points to the market failure in insurance which I have warned of for some time; many businesses simply cannot get insurance.

This is not a case of insurance being too expensive, or limited options.

There are many operators in my electorate who have no-one left to turn to; nobody will insure them.

As Kate Carnell has noted in the report ‘there is market failure that will have extreme consequences for the Australian economy if left unaddressed’.

I’m pleased to see number of the recommendations in the ASBFEO Insurance Inquiry Report December 2020.

Recommendations 5 to 7 refer to the issues of getting public liability insurance, which is inhibiting development and the creation of jobs in the tourism sector.

Recommendation 7 notes that ‘where there is only one or no insurers left in a professional indemnity market, the Federal Government should provide an insurance scheme of last resort for small business’.

Recommendation 8 of the report goes to the heart of the issue for North Queensland which has been repeatedly impacted by natural disasters and is exactly what I have been calling for.

It notes ‘Expand the Australian Reinsurance Pool Corporation to provide reinsurance for all natural disasters for commercial property insurance’.

ASBFEO is a government agency making recommendations on what needs to be done and I welcome the added impetus this report provides to bring about a resolution on insurance for North Queensland.

https://www.asbfeo.gov.au/sites/default/files/Final%20Insurance%20Report.pdf