Tasmania’s tourism industry is demanding answers on the government’s promised insurance reforms, warning businesses are facing another year of rising premiums without knowing whether they will receive help.
Tourism Industry Council of Tasmania CEO Amy Hills said operators are bracing for another round of insurance renewals with no clarity on who will be eligible for support or when changes will take effect.
TasInsure was a key election commitment at last year’s state election, but the tourism industry says it is still waiting for details on how the scheme will work.
“It’s been 12 months since the last election where the government promised to fix the problems in the insurance market and while the government released a plan in May,” she said.
“There’s still no detail about who will be eligible, who will be covered and when the insurance changes will come into place.”
Industry research shows the cost of insurance has surged, with public liability premiums rising 54% over five years, property cover up 53% and motor vehicle insurance climbing almost 40%.
Hills said the government’s TasInsure announcement at last year’s tourism conference was met with excitement, but progress had stalled.
“This is an urgent issue, this is something that our operators are living each and every day and they need some hope that we’re actually going to make a difference in this space,” she said.
Destination Southern Tasmania CEO Alex Heroys said some regional operators have faced insurance increases of up to 300% in a single year.
“These businesses create jobs, sustain local suppliers and provide the authentic experiences that make Tasmania so special,” he said.
Heroys warned that if businesses cannot get insured, they face total loss in the event of a disaster.
Waterfalls Cafe & Gallery in Mount Field owner Rachel Power said her business nearly cut its insurance coverage last year due to rising costs, only to be hit by a kitchen fire that shut the business down for weeks and reduced staff from 30 to three.
Hills said the industry was willing to work with the government but needed clarity before another cycle of renewals.
Minister Felix Ellis said the government was working through the TasInsure process and would have more to say in the coming weeks.
“It takes time to work through a complex matter like insurance, that’s why we need to make sure that we are taking all the appropriate steps getting it right and delivering a product that works for Tasmanians,” he said.
“I think anyone that’s been involved with insurance would say that this is a complex area and so us taking the time to get it right is exactly what Tasmanians would expect.”
