The state’s peak business body warns insurance premiums are spiralling out of control, with 85 per cent of businesses in Western 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.
Business NSW, Regional Director – Western NSW, Vicki Seccombe said businesses are fed up with having the highest-taxed insurance premiums in mainland Australia.
“The NSW Government is collecting more than ever through the Emergency Services Levy (ESL) and stamp duty,” Ms Seccombe said.
“This leaves businesses either to either foot the bill or simply go without insurance and hope for the best. Many others have been flat-out rejected by insurance companies.
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Alarmingly, a December survey of Business NSW members found that 64 per cent of respondents were not fully insured against catastrophic events.
This leaves businesses exposed and underscores the urgent need for systemic reform.
Ms Seccombe 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 Seccombe said.
“Businesses are struggling because of rising premiums, and it's simply unsustainable.
"Many Western NSW 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 per cent or more in a year."
Other localised findings from the Business Conditions Survey include:
• We are seeing green shoots locally and across NSW, with the Business Confidence Index rising to -44.7 for the March quarter of 2025, the highest reading in almost three years.
• 75 per cent of Western NSW 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, and
• Key factors that would boost Western NSW business confidence in 2025 include further interest rate cuts, slowing inflation, easier access to skilled workers and more domestic visitors.
