The state’s peak business body warns insurance premiums are spiralling out of control, with nearly 80 per cent of businesses in NSW reporting double-digit increases over the past year.
Business NSW’s latest quarterly Business Conditions Survey reveals a staggering one in three businesses saw premiums rise by 30 per cent or more — well above the 2.5 per cent inflation rate for the year to January.
Regional Director Diane Gray said businesses in the New England North West are fed up with having the highest-taxed insurance premiums in mainland Australia.
“Regional businesses are hurting as the NSW Government collects more through the Emergency Services Levy (ESL) and stamp duty,” said Ms Gray.
“Businesses are left to foot the bill or simply go without insurance and hope for the best. Many others have been totally rejected by insurance companies.”
In a separate Business NSW survey 64 per cent respondents said they were not fully insured against catastrophic events.
“This trend is very disturbing, leaving businesses exposed and demonstrates the urgent need for reform of the insurance industry.” Ms Gray said
Ms Gray said insurance premiums have been the top financial concern for businesses for nearly two years.
“The state and federal governments need to step up and do something now,” Ms Gray said.
“Businesses are struggling because of rising premiums, and it’s simply unsustainable.”
“Many New England North West businesses now find themselves either uninsurable or unable to afford the soaring cost of insurance.”
“You can’t run a business when your premiums increase by 30% or more in a year.”
“If we don’t get this under control, the entire economy will feel the impact.”
Other findings from the Business Conditions Survey for NSW and NENW include:
- The Business Confidence Index for NENW rose to -52.0 for the March quarter of 2025.
- 82 per cent of businesses plan to maintain the same headcount or hire additional staff.
- More businesses are investing in technologies like Artificial Intelligence (AI) to boost productivity.
- More businesses now view regulatory requirements as excessive.
- Key factors that would boost business confidence in 2025 include further interest rate cuts, slowing inflation, easier access to skilled workers and stronger sentiment to buy locally.
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