Over 150 survey responses and a number of submissions in relation to the ABSFEO’s Insurance Inquiry were received in the first few days and the number is expected to grow.
“While we are only in the early stages of the inquiry, it is clear the small business community supports the work we are doing in this area,” said Ms Carnell.
The inquiry follows a growing number of complaints from small businesses that have either been denied insurance or priced out of the market.
As such, the ASBFEO announced an inquiry into insurance affordability and availability at the end of June, to investigate the practices of the insurance industry that impact small businesses and consider whether small business insurance products are fit for purpose.
“I’m particularly concerned about a number of cases where small businesses with current insurance policies have been subjected to major changes that have reduced their coverage without their consent, and with no refund of premiums,” said Ms Carnell.
“Our inquiry will look at this in more detail and consider if these practices amount to unfair contract terms.”
The insurance inquiry will target a range of issues affecting small businesses, including:
- The availability and coverage of insurance policies provided to small business;
- Insurance policy affordability;
- The role of brokers in getting the right coverage;
- Contract changes that have not been agreed to and whether they amount to unfair contract terms;
- Timeliness of insurance payouts and effectiveness of dispute resolution frameworks; and
- The effectiveness of relevant codes of conduct and legislation, including if applicable penalties are adequate.
“We remain very keen to hear from small and family businesses that have faced difficulties with their insurance provider,” said Ms Carnell.
“I encourage these businesses to share their experiences by completing our online survey or emailing my office via inquiries@asbfeo.gov.au by 30 August 2020.
“We also welcome submissions from industry stakeholders, which can be emailed to inquiries@asbfeo.gov.au by 21 August 2020.”
A final report is expected to be released in December.
