Insurance challenges: ASBFEO launches an inquiry
Small and family businesses have faced difficulties with their insurance companies, ASBFEO have launched an inquiry to investigate the practices of the insurance industry and consider whether insurance products are fit for purpose.
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. Queensland Tourism Industry Council (QTIC) has recieved an influx of feedback regarding 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.
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.
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