Australia’s Parliamentary Joint Committee on Corporations and Financial Services has begun an inquiry into the insurance sector, focusing on the products and regulatory environment affecting small businesses, not-for-profit groups, and community organisations.
The committee’s review comes amid ongoing concerns about rising insurance premiums and limited availability, which have left many organisations either underinsured or without coverage.
The Insurance Council of Australia (ICA) highlighted a significant rise in public liability insurance costs for small businesses and not-for-profit organisations since 2019, according to a submission made to the Local Government, Small Business, and Customer Service Committee in May 2025.
The ICA noted that average public liability premiums have climbed by 55% to 60% over the past six years, a rate that has exceeded general inflation. Some organisations have faced even steeper increases, particularly those operating in sectors considered higher risk.
The ICA’s submission highlighted that community groups, volunteer-based organisations, and businesses offering outdoor leisure activities have been among the most affected by both rising premiums and reduced access to coverage. The council pointed out that for many of these organisations, public liability insurance is essential for financial security and ongoing operations. Without adequate coverage, the ability of these groups to continue providing services may be at risk.
The inquiry will examine whether the current regulatory settings and insurance offerings are suitable for today’s business climate.Particular attention will be paid to sectors such as construction, tourism, and live music, where insurance access has become increasingly restricted.
The committee’s scope includes public liability, professional indemnity, cyber risk, and business interruption insurance.
Stakeholders and interested parties are invited to submit written feedback by March 6, 2026. Further details, including information about public hearings, will be made available on the committee’s website as the inquiry progresses.
The committee’s investigation aims to determine if existing insurance products are meeting the needs of small businesses and not-for-profits as risks evolve.
The review will also consider potential reforms to improve the accessibility and affordability of insurance, with the goal of ensuring that coverage is both practical and fit for purpose in the current environment.
