Scouts Australia warns systemic insurance market failure is forcing the closure of outdoor programs that build resilience, wellbeing and social skills, “threatening an entire generation” of children.

The benefits of sustained participation in scouting have been shown through research, but they are being eroded as access to adventure-based activities is withdrawn, the organisation says in a submission to the federal parliamentary inquiry into small business cover.

“This issue extends beyond scouting and reflects a systemic market failure affecting not-for-profit and volunteer organisations across Australia, with long-term consequences for youth engagement, community infrastructure and social outcomes,” national GM Chris Allen says.

The parliamentary inquiry, which has published 87 submissions on its website, will hold its first public hearings in Sydney on May 6-7 and will report on October 27.

Scouts Australia says insurers are applying exclusions despite the group’s trained leadership, comprehensive risk management and alignment with the Australian Adventurous Activity Standard, and costs are rising.

The NSW branch has seen annual insurance costs increase by more than $1 million, underpinned by a 345% increase in property premiums, and ACT public liability premiums rose 148% year on year.

SA total insurance costs escalated from about $550,000 to $1.3 million in a single renewal cycle, NT costs have doubled after a withdrawal of cover for scout halls by local insurers, and in Tasmania insurance costs make up 37% of total expenses, it says.

Rising premiums drive up membership fees, making it harder for Scouts to attract and retain young people and placing pressure on the organisation’s financial sustainability.

The submission says there is an urgent need for a co-ordinated policy intervention, and an evidence-based regulatory framework should recognise managed risk and ensure insurance remains a “functional enabler” for the non-profit and small business sectors.

Proposed actions include a national disaster pool for high-risk regions, a review of a $20 million liability cap to reduce the overinsurance burden, improved data transparency on claims frequency and severity by sector to compel evidence-based underwriting, and single broker or co-operative approaches to boost small entities’ bargaining power.

---

From the latest Insurance News magazine: Find out what the market has in store for you, as we reveal some highlights from Insurance News and Finity's 2026 INFORM report

---