Insurance challenges facing small businesses, charities and community organisations will be the subject of a federal parliamentary inquiry.

The Joint Committee on Corporations and Financial Services will examine insurance accessibility across lines including public liability, professional indemnity, cyber and business interruption.  

The “provision, regulation and pricing of modern insurance products” will also fall under the spotlight as MPs seek ways to address cost issues across high-risk industries and regional operations. 

The inquiry follows a referral from Financial Services Minister and Assistant Treasurer Daniel Mulino.  

NSW senator Deborah O’Neill, the committee’s chair, says small businesses and non-profit organisations face risks that are “unrecognisable from 20 years ago, including cyber threats and covid. Many are finding it harder to find the insurance they need to operate safely and confidently.

“We want to ensure small businesses are equipped to succeed in a constantly changing business environment.”  

Senator O’Neill says the committee will “look into whether the current insurance regulatory framework delivers affordable and adequate outcomes.

“I appreciate the Assistant Treasurer’s decision to refer this important inquiry to our committee, and look forward to working with my colleagues from across the parliament to investigate this issue and report back with meaningful recommendations.

“We will focus on practical solutions to support the people and organisations that keep our communities strong.”  

The inquiry is expected to engage with community groups, small business owners, insurers and regulators over coming months.  

The Insurance Council of Australia welcomed the inquiry but issued a reminder that state taxes on insurance add to affordability concerns.

"We know that insurance provides an important safety net for small business to operate and offer services to their community," a spokesperson said.

"State and territory governments have a critical role to play when it comes to making insurance more affordable by removing state insurance taxes and reforming laws that are no longer fit-for-purpose.

"The insurance industry welcomes the inquiry into small business insurance and looks forward to working constructively with the committee to help find ways to reduce risk and improve affordability."

A final report is due by October 31 next year.