Serena Hardwick, Business NSW Regional Director Riverina Murray, said coupled with energy costs, wages and regulatory compliance, it was no longer a ‘cost of doing business crisis’, but a barrier to doing business and this was a major concern for everyone in the regions.
The CRW Regional Business Chamber recently met with Albury MP, Justin Clancy to raise serious concerns about the escalating cost of insurance and the growing pressure it was placing on small businesses across regional communities.
The discussion focused on the rapid escalation of insurance premiums, increasing regulatory burdens and broader economic pressures threatening the sustainability of regional small business.
Company secretary, John Crothers said some businesses reported increases of 30 to 50 per cent or more in annual insurance costs, despite strong risk management practices and no claims history.
“There is concern that an increasing number of businesses are now operating under-insured or uninsured, exposing owners and communities to significant risk,” he said.
“These costs don’t exist in isolation; when they are combined with energy prices, staffing challenges and regulatory costs, they create a situation that is becoming diabolical for small business operators.”
The CRW Regional Business Chamber is calling for urgent dialogue between government, insurers, brokers and industry groups and confirmed the issue would be raised with candidates in the Farrer by-election.
“The pressures facing small business are bipartisan and require urgent national attention,” Mr Crothers said.
“Regional small businesses play a critical role in employment, tourism and community life and if this trend continues, we risk losing the very businesses that give regional towns their character, employment opportunities and visitor appeal.”
The Chamber has warned that without action, rising insurance costs could lead to closures, reduced services and greater consolidation by large corporate operators.
Business Chamber president, Greg Ley said small business was the backbone of towns like Corowa, but many operators were reaching a tipping point.
“When insurance premiums rise dramatically year after year, on top of energy costs, wages and regulatory compliance, it becomes extremely difficult for regional businesses to remain viable,” Mr Ley said.
“If we want vibrant regional communities and strong local economies, we must ensure the policy settings allow small businesses to survive and grow.”
Business chamber board member, Julie Upton is also a director at Dingle & Co Accountants and said they were seeing the pressure right across the small business community.
“Clients are increasingly coming to us concerned about the affordability of insurance and whether they can continue operating at current levels,” Ms Upton said.
“Caravan parks, accommodation providers and tourism operators are particularly exposed and for some businesses, insurance is now one of their largest operating costs.”
Fellow board member and managing director at Amaranth Foundation, Julieanne Whyte said even not-for-profit organisations were feeling the impact.
Charities that exist to support vulnerable members of the community are facing significant insurance increases, which ultimately reduces the resources available to help people in need,” she said.
“This issue affects far more than individual businesses; it impacts the entire social and economic fabric of regional communities.”
Federation council’s Manager Community and Economic Development, Narelle Donovan said meeting with Mr Clancy ensured that local pressures were being heard where it counts.
“We are seeing a perfect storm where rising insurance, utility costs and rates are all hitting businesses at the same time,” Ms Donovan said.
“Costs jumping by 30 to 50 per cent is simply unsustainable for people on the ground.”
Mr Clancy will raise the concerns in Parliament and advocate for greater attention to the accessibility and affordability of insurance for regional small businesses.
“These are the very businesses that provide local jobs, attract visitors and help keep our towns vibrant,” he said.
“Governments, insurers and industry need to work together to understand what is driving these increases and what can be done to ensure viable businesses are not priced out of operating in regional communities.”
Ms Hardwick said the Emergency Services Levee must be addressed in this parliamentary term.
“The ESL immediately makes insurance over 20 per cent more for NSW businesses than for those across the border.”
