Small businesses and not-for-profits across Australia lack adequate access to professional insurance and risk advice, the National Insurance Brokers Association (NIBA) told federal lawmakers in May 2026, as the industry body put its case for regulatory reform before the Parliamentary Joint Committee on Corporations and Financial Services. CEO Richard Klipin – appearing alongside president Nicholas Cook, vice-president Rebecca Wilson, and policy and advocacy lead Ben Marshan – told the committee that the risk environment for smaller enterprises had grown more difficult to navigate in recent years. “Australian small businesses and not-for-profits today operate in an environment of rising complexity – cyber threats, intensifying natural catastrophes, evolving global political risks, and escalating regulatory obligations. Access to professional insurance and risk advice in this environment is essential,” Klipin said.
Klipin used internal NIBA research to argue that broker involvement produces measurable improvements in insurance outcomes for smaller clients. According to the data, 95% of broker clients consider their broker critical to resolving claims, while 98% of claims handled with broker support reach a successful outcome. Brokers also reduce the administrative burden on clients, saving an average of 20 hours of paperwork per claim. “When small businesses and not-for-profits have access to brokers, they receive better advice, more appropriate insurance coverage, superior claims outcomes, and greater confidence in the protection of their assets and livelihoods,” Klipin said.
At the core of NIBA's 12 recommendations – submitted to the inquiry in March 2026 – is a legislative classification issue that the association argues has left commercial insurance buyers without adequate consumer protections. Under the Corporations Act, small businesses purchasing commercial lines such as public liability, professional indemnity, cyber, and business interruption insurance fall outside the retail client definition. This means they do not receive the same regulatory safeguards that apply when individuals buy personal lines like home or motor cover. NIBA has called on the government to review the section 761G(5) prescribed product list and to conduct a regulatory impact assessment focused specifically on general insurance broking.
The second strand of NIBA’s recommendations targets inconsistencies at the state and territory level. The association is pushing for a nationally consistent workers’ compensation framework, the removal of emergency services levies that are funded through insurance premiums, and uniform stamp duty treatment across jurisdictions – all of which it argues add cost and complexity to the market without improving outcomes. The third area covers a range of sector-specific issues, including the availability of cover for high-risk not-for-profit activities, the cost drivers behind public liability insurance, cyber awareness among small businesses, government procurement standards, and the case for expanding government-funded resilience grants to small and medium-sized enterprises.
In a separate submission to the same inquiry, the Insurance Council of Australia (ICA) pointed to a 60% rise in small business insurance premiums since 2019, attributing the increase to outdated liability legislation, growing legal costs, and regulatory compliance burdens. The ICA called for a national review of liability laws, limits on legal fees in claims processes, a ban on claim farming – the practice of soliciting injury claims through cold calls or other pressure tactics – and changes to government procurement requirements that it argues force small businesses to purchase coverage beyond what their contracts warrant.
The parliamentary inquiry was launched in November 2025 after legislators identified the cost and availability of insurance as a growing problem for small businesses and community groups. Sectors including construction, tourism, and live music were cited as areas where market access has tightened. The committee is assessing whether current products and the existing regulatory framework are suited to contemporary business conditions. Senator Deborah O’Neill chairs the committee. Both NIBA and the ICA have indicated they intend to remain engaged as the process continues.
