The Canberra Business Chamber has welcomed the announcement of an ACT Legislative Assembly Inquiry into insurance costs.

“The Canberra Business Chamber has been advocating for action on the cost of business insurance in the ACT, and we are really pleased that the Legislative Assembly’s Standing Committee on Economics, Industry and Recreation has announced it is undertaking an inquiry,” Greg Harford, Canberra Business Chamber Chief Executive said today. “Insurance is critical for any business because it helps them manage risk and deliver services to customers, yet the costs are increasing sharply, and are growing beyond the ability of many firms to pay.

“In the Canberra Business Beat report for the September 2024 quarter, most businesses reported that their insurance costs are rising fast, and well beyond the cost of inflation. 44 per cent reported premium hikes of more than 20 per cent over the previous two years.

“Increases in insurance premiums ultimately translate into price increases for customers, and make it harder for businesses to operate sustainably.

While there are issues around the cost of insurance in general, Mr Harford said that workers’ compensation insurance is particularly problematic. “The Chamber is hearing about huge price hikes for workers’ compensation insurance, and members report that it is substantially more expensive here in the ACT than in New South Wales or other jurisdictions. On the face of it, there’s no good explanation for this, but it does put ACT businesses at a competitive disadvantage compared to firms in other states.

“The Canberra Business Chamber is looking forward to engaging constructively with the Committee on this important issue, and seeking solutions to the problem.”

-ENDS-

CBC Media Contact: Greg Harford, Chief Executive Officer
Mobile: 0423 357 066,
Email: greg.harford@canberrabusiness.com
CBC Office: 02 6247 4199