Coalition leader Peter Dutton has raised concerns about “uninsurable risks” on a visit to the Victorian tourist town of Halls Gap, which was hit by bushfires and associated disruption over the Christmas period.

The Insurance Council of Australia says fires in the Grampians region from December 17 to January 6 resulted in about 134 claims, many of which relate to business interruption. 

Local representatives and residents have complained about the cost and availability of insurance, especially in relation to bushfire, and a community forum was held in Halls Gap on Wednesday, attended by ICA, the National Insurance Brokers Association and the Rural Financial Counselling Service.

Federal MP for Mallee Anne Webster, introducing Mr Dutton, said businesses are the “lifeblood” of the region but “insurance is not stepping up and meeting the need of the community”.

Mr Dutton said many businesses are “really concerned” about insurance.

“If they don’t have disruption insurance, if they don’t have insurance in relation to liability, they can’t be taking people on walks and having people in their restaurants. They’re an uninsurable risk in that circumstance, and that needs to be addressed,” he said.

“There are businesses now that can’t get insurance and banks won’t lend money to a business that can’t insure the asset that underpins the loan that’s been made. In that circumstance, those people lose their business if they can’t get finance, they sack the staff, they move on, and that has a spiralling effect in a community like this.”

ICA director for mitigation and extreme weather response Liam Walter says the Grampians is “no stranger to natural disasters of this scale”, this being the second time in 12 months that significant fires have caused damage. 

“ICA and insurers are committed to supporting their customers who are recovering from these most recent devastating events, which again highlight how vulnerable many local communities are to natural disasters linked to Australia’s harsh climate,” he said.

Dr Webster says insurance costs have quadrupled for many businesses after last year’s fires.

“Worse still, most Halls Gap businesses tell me they can't secure insurance at all,” she said. “I am working with locals and the insurance industry to find solutions. I am pleased to say that Peter Dutton committed to speaking to the Prime Minister and to consider policy to fix this situation.

“Insurance companies should have an obligation to provide insurance or businesses simply will pack up and leave.”

The Labor government last year launched its Insurance Affordability and Natural Hazards Risk Reduction Taskforce, but has yet to provide any updates on its progress.