NIBA MEMBER CONSULTATION - Parliamentary Inquiry into Small Business Insurance 

  • NIBA MEMBER CONSULTATION - Parliamentary Inquiry into Small Business Insurance 

    Provision, regulation, and pricing of modern insurance products for small businesses, not-for-profit and community organisations 

  • About This Consultation 
    The Parliamentary Joint Committee on Corporations and Financial Services has launched an inquiry into small business and not-for-profit insurance. This inquiry, referred by Assistant Treasurer Dr Daniel Mulino, presents a significant opportunity for NIBA to demonstrate the essential role the broking profession plays in helping Australian businesses access, understand, and afford appropriate insurance protection. 

    NIBA is preparing a comprehensive submission and seeks your insights and experiences to ensure our response reflects the realities of the market as you see them every day. Your feedback will directly inform our advocacy to Parliament. 

    We are particularly interested in specific examples and case studies — both positive and challenging — that illustrate the value the broking profession provides and the barriers your clients face. 

    Thank You 

    Your practical insights are invaluable in ensuring NIBA’s submission reflects the real-world experiences of brokers and their clients. The evidence you provide will help us demonstrate to Parliament the essential role the broking profession plays in supporting Australian small businesses and community organisations. 

    For any questions about this consultation, please get in touch with the NIBA Policy and Advocacy Team at policy@niba.com.au. 

  • Section 1: Access to Contemporary Coverage

    The inquiry is examining access to coverage for public liability, professional indemnity, cyber threats, and business interruption.

  • 1.1 Coverage Gaps and Emerging Risks

  • 1.1a. Which classes of cover do your small business and not-for-profit clients most commonly struggle to obtain adequate coverage for? (Please rank or identify your top 3)
  • 1.1c) Have you observed insurers withdrawing from, or significantly restricting capacity in, any product classes for SME / NFP clients in the past 2–3 years?

  • 1.2 Hard-to-Place Risks and Niche Sectors

  • 1.2a) Which industry sectors or client types do you find most challenging to place with mainstream insurers?
  • 1.2b) For hard-to-place risks, which solutions do you typically employ? (Select all that apply)
  • 1.2d) Does your firm have access to international insurance markets?

  • 1.3) The Value of Professional Advice and Innovation

  • 1.3b) In your experience, do small business clients who purchase insurance directly (without broker advice) typically have adequate coverage for contemporary risks like cyber and business interruption?

  • Section 2: Affordability and Availability

    The inquiry is examining affordability and availability across different regions and sectors, including regional/remote Australia and high-risk industries.

  • 2.1 Premium Trends and Client Impact

  • Rows
  • 2.1b) How are your clients responding to premium increases? (Select all that apply)
  • 2.1c) Have you had clients who have ceased operations, curtailed activities, or changed their business model specifically due to insurance affordability or availability issues?

  • 2.2 Regional and Remote Markets

  • 2.2 Do you serve clients in regional, rural, or remote Australia?
  • Rows

  • 2.3) High-Risk Industries and Activities

  • 2.3a) Which industry sectors or activities face the most significant affordability or availability challenges? (Select all that apply)

  • 2.4 Public Liability Insurance

  • 2.4a) What are the primary factors driving premium increases and availability challenges in public liability insurance?

  • 2.5) Impact of Taxes and Levies

  • 2.5b) Have your clients specifically raised concerns about the impact of taxes and levies on their insurance costs?
  • 2.5c) Do insurance-based taxes and levies contribute to underinsurance among SMEs and NFPs?

  • Section 3: Adequacy of the Regulatory Framework

    The inquiry is examining whether the current regulatory framework adequately addresses modern insurance challenges.

  • 3.1 Regulatory Burden and Proportionality

  • 3.1a) Are current regulatory requirements proportionate to the risks in the general insurance broking sector?
  • 3.1c) Does the current regulatory framework adequately distinguish between general insurance advice and other financial services?

  • 3.2 Upstream Compliance and Cost Pressures

  • 3.2a) Are data, reporting, or policy compliance demands from insurers or underwriting agencies increasing the cost or complexity of placing insurance for SME clients?

  • 3.3 State and Territory Regulatory Harmonisation

  • 3.3a) Do differences in state and territory regulatory requirements create additional complexity or cost when arranging insurance across multiple jurisdictions?
  • 3.3b) Which areas of state/territory harmonisation would you prioritise?

  • 3.4 Access to Advice and Remuneration

  • 3.4a) How do your SME clients typically prefer to pay for broking services?
  • 3.4b i) If commission-based remuneration were removed or restricted, what impact would this have on small business access to professional insurance advice?
  • 3.4b ii) What impact would removal of commissions have on NFP and community organisation access to advice?
  • 3.4b iii) What impact would it have on your ability to service clients with smaller premium volumes?

  • 3.5 Consumer Understanding and Protection

  • 3.5a) Do your clients understand the difference between purchasing insurance directly from an insurer and obtaining advice through a broker?

  • Section 4: Related Matters

    The inquiry invites submissions on any related matters.

  • 4.1 Mitigation and Risk Reduction

  • 4.1a) Have you advised clients on risk mitigation measures that could reduce their insurance costs or improve their insurability?
  • 4.1b) Are insurers consistently recognising and rewarding client investments in risk mitigation through premium reductions?

  • 4.2 Claims Experience

  • 4.3 Your Recommendations

  • 4.3c) Would you be willing to provide further detail on any of your responses, or to have your experiences referenced (de-identified) as a case study in NIBA's submission?
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