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Australian Small Businesses Advocate for Insurance Premium Reforms

Addressing the Impact of Escalating Costs on SMEs

Australian Small Businesses Advocate for Insurance Premium Reforms?w=400

The information on this website is general in nature and does not take into account your objectives, financial situation, or needs. Consider seeking personal advice from a licensed adviser before acting on any information.

In October 2025, the Australian Chamber of Commerce and Industry, in collaboration with the Insurance Council of Australia, released a report highlighting the significant challenges faced by small and medium-sized enterprises (SMEs) due to soaring insurance premiums.
The report emphasizes that many SMEs are compelled to either forgo insurance coverage or reduce their policies to remain financially viable in a challenging economic environment.

The escalating costs have led to calls for a coordinated national response to alleviate the burden on small businesses. Key recommendations from the report include:

  • Abolishing taxes on insurance policies to reduce overall costs.
  • Initiating a Productivity Commission review to assess small business insurance expenses.
  • Establishing a national support body dedicated to small business insurance and risk management.
  • Collaborating with insurers to develop tailored insurance products that meet the specific needs of SMEs.
  • Reforming civil liability laws to create a more balanced legal framework.

Andrew McKellar, CEO of the Australian Chamber of Commerce and Industry, stated that insurance should serve as a fundamental safety net for small businesses rather than becoming an unmanageable financial burden. He noted that numerous businesses have reported premium increases of 30% or more within a single year, underscoring the urgency for reform.

For Australian SMEs, this situation highlights the importance of proactive engagement with insurance providers and brokers to explore cost-effective coverage options. Additionally, staying informed about potential policy changes and advocating for reforms can contribute to a more sustainable insurance landscape for small businesses.

Published:Wednesday, 5th Nov 2025
Source: Paige Estritori

Please Note: If this information affects you, seek advice from a licensed professional.

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