Improving insurance affordability outcomes in the visitor economy

Austrade, with support from The Treasury, convened a series of workshops in 2023 to bring together stakeholders from state and territory tourism and their insurance counterparts. The aim was to collaborate and share information to improve insurance affordability outcomes. 

The workshops were delivered as part of the Australian Government’s THRIVE 2030 national strategy supporting long-term sustainable growth of the visitor economy.

Globally, the cost of re-insurance has been rising and several international insurance firms have left the Australian market in recent years. Businesses in the visitor economy have reported difficulty in obtaining affordable insurance policies, which are critical to underpin their operations.

Working together

The Visitor Economy and Client Programs Division in the Australian Trade and Investment Commission (Austrade) has worked closely with other Australian Government agencies to address rising public liability insurance premiums in the visitor economy. This includes the:

  • insurance policy unit at The Treasury
  • insurance and economic policy team at the National Emergency Management Agency Australian Prudential Regulatory Authority and
  • Australian Small Business and Family Enterprise Ombudsman.

Stakeholders were brought together from the visitor economy, insurance industries, tourism policy agencies and treasuries from the Australian Government and state and territory governments. Their focus was to share ideas and address insurance affordability challenges.

At one of the Austrade workshops, the Australian Outdoor Industry and Outdoors NSW & ACT shared lessons learned with other sector participants, helping inform best practice going forward.

Benefits for the community

The workshops enabled stakeholders to build a better understanding of the factors influencing insurance premiums and the practical steps that can be taken to access cheaper insurance products.

Tourism industry associations have responded to this increased understanding of challenges facing tourism businesses. They have done so by developing resources to help improve insurance affordability outcomes including:

  • The Caravan Industry Association of Australia teamed with the Insurance Council of Australia to create the Insuring Caravan Parks roadmap to encourage industry-wide engagement and action for industry members. The roadmap helps users focus on data collection, accreditation programs, technology development, risk profiling, and insurance sector education.
  • Outdoors NSW & ACT collaborated with Affinity Insurance Brokers to create activity-safe guidelines. These assist adventurous activity providers to reduce risk and find more effective insurance solutions.

Stuart Lamont, Chief Executive Officer of the Caravan Industry Association of Australia, acknowledged Austrade's efforts to bring industry stakeholders together, saying:

It has been instrumental in facilitating collaboration and sending a message to the insurance industry that we are doing what it takes to reduce risk, and we have already seen some insurance premium relief and increased access for businesses.

Find out more

Australian Government (n.d.) THRIVE 2030 strategy, Australian Trade and Investment Commission website, accessed 30 August 2024.

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