IPA welcomes Insurance Inquiry report from ombudsman

THE INSURANCE INQUIRY report released by the Australian Small Business and Family Enterprise Ombudsman (ASBFEO) has been welcomed by the Institute of Public Accountants (IPA), noting "there is still much to be done".

“The ASBFEO insurance report highlights the many issues facing small business owners, some of which make it impossible for them to carry on business as they can’t get insurance or the cost of insurance is prohibitive,” IPA chief executive officer, Andrew Conway said.

“Whilst this is evidence of market failure, the industry in its entirety should not be brandished with the same brush. The key factor, however, is one of affordability for the most suitable insurance product that meets and aligns with the small business owner’s needs.

“IPA shares the view that the hidden costs of insurance should be made transparent, including stamp duty and GST, which in some states make up 21 percent of the premium," Mr Conway said.

“This is in effect, revenue raising by governments who continue to place undue duress on the insurance system, which adds to increasing costs for consumers.

“The IPA will continue to advocate to properly educate small businesses on insurance needs and importantly, to educate and activate the insurance sector to better understand and meet the insurance needs of small business in a competitive market,” Mr Conway said,

 

About the Institute of Public Accountants

The IPA, formed in 1923, is one of Australia’s three legally recognised professional accounting bodies. With the acquisition of the Institute of Financial Accountants in the UK, the IPA Group was formed, with more than 40,000 members and students in over 80 countries. The IPA Group is the largest SME focused accountancy organisation in the world.  www.publicaccountants.org.au

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