Insurance challenges

The Australian Small Business and Family Enterprise Ombudsman (ASBFEO) has launched an inquiry to investigate the practices of the insurance industry that impact small businesses and consider whether small business insurance products are fit for purpose.

We’ve been hearing from an increasing number of members recently about a growing trend of insurance companies denying businesses insurance completely or pricing insurance policies out of reach.  QTIC has raised this as an urgent issue in relevant state and federal forums, including with federal members of Parliament .  The inquiry announced now will look specifically at addressing these various concerns.  While this inquiry is focused on the small business sector, we are quite aware that the problem is affecting all businesses and we will continue to pursue the issue at all levels. 

The inquiry will cover the following issues: 

  • 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
  • The effectiveness of relevant codes of conduct and legislation, including if applicable penalties are adequate.

A final report is expected to be released by December 2020.

Small and family businesses that have faced difficulties with their insurance companies are encouraged to complete this online survey or email