The National Insurance Brokers Association of Australia (NIBA) will appear before a federal parliamentary inquiry to set out its proposals on how small businesses and not-for-profit organisations access and purchase insurance. NIBA representatives – CEO Richard Klipin, president Nicholas Cook, vice-president Rebecca Wilson, and policy and advocacy lead Ben Marshan – are scheduled to give evidence to the Parliamentary Joint Committee on Corporations and Financial Services. The appearance follows NIBA’s March 2026 submission to the committee’s inquiry into small business insurance, which outlines 12 recommendations across four themes.
A key element of NIBA’s submission is how small businesses are classified under the Corporations Act and the extent of retail client protections when they buy insurance. At present, many small enterprises are not treated as retail clients when they purchase commercial products such as public liability, professional indemnity, cyber, and business interruption insurance. They do, however, receive retail protections when taking out home or motor policies. NIBA is calling for a review of the definition of “small business” across the insurance regulatory framework and, in particular, the prescribed list of retail general insurance products in section 761G(5) of the Corporations Act. The association argues that the current classification does not reflect the way small firms depend on core commercial policies to operate and manage risk.
The second theme addresses how the regulatory framework for general insurance advice affects access to brokers and advisory services. NIBA has recommended a regulatory impact review specific to general insurance broking. It says the existing advice regime was designed for investment products and applies compliance settings that are not tailored to general insurance distribution. According to NIBA, these requirements increase costs for broking clients without a corresponding consumer benefit for many small and medium-sized enterprises.
The submission also proposes that any future reforms affecting insurance distribution be subject to formal impact assessments that consider access to professional advice. Under that approach, changes to advice or distribution rules would be assessed not only for administrative objectives but also for their effect on small businesses’ ability to obtain broker support. NIBA is further advocating the standardisation of financial lines proposal forms across insurers, using plain language and consistent information requirements. The association maintains that this could reduce duplication and complexity when brokers seek terms from multiple markets for SME clients.
The third theme focuses on differences between state and territory arrangements that interact with insurance, including workers’ compensation schemes and insurance-related taxes and levies. NIBA has asked governments to prioritise national harmonisation of workers’ compensation obligations, including consistent impairment thresholds for common law claims and standardised administrative processes. In its view, divergent rules and systems add compliance work for employers that operate in more than one jurisdiction.
On funding for emergency services, NIBA is advocating the abolition of insurance-based emergency services levies and their replacement with broad-based property charges. In its submission, it describes the existing model as “inequitable, inefficient, and drives underinsurance among small businesses and not-for-profits.” It is also calling for nationally consistent stamp duty treatment for insurance to reduce differences in tax treatment between states and territories.
The final theme deals with sector-specific issues, particularly for community organisations and not-for-profits engaged in higher-risk activities. NIBA is encouraging government and industry to work on market-based options such as pooled risk-sharing arrangements, sector-specific underwriting facilities, and frameworks that recognise governance and risk management practices. The association’s view is that these mechanisms could help align coverage availability and pricing with the risk profile of not-for-profit activities, while recognising organisations with established governance and risk management approaches. Public liability is identified as a key pressure point. NIBA is calling for a review of liability cost drivers, including tort law settings, in response to premium increases it estimates at 55% to 60% over the past six years for many small businesses and community groups. The submission states that current pricing is making some activities and services harder to continue.
The submission also highlights cyber risk management and cyber insurance for SMEs. NIBA recommends expanding cyber awareness and education programs for smaller enterprises, building on the federal government’s Essential Eight framework. It further proposes that insurers be required to share anonymised insights from the mandatory ransomware reporting framework to support a broader understanding of cyber risk patterns and effective controls.
In relation to government procurement, NIBA wants tender documents and contracts to specify insurance requirements that are proportionate to the actual operational risks of the work. It also calls for consistent application of Australia’s unfair contract terms laws in public sector contracts and for the removal of clauses that transfer broad, contractually assumed liabilities, or limit proportionate liability protections. The association argues that these provisions can expose SMEs and not-for-profits to uninsured financial risks and may affect participation in tenders. NIBA is also urging governments to expand targeted resilience grants and tax incentives to support mitigation investments by SMEs and community organisations. Examples include funding or incentives for flood barriers, fire protection systems, and cybersecurity upgrades. The association says such measures can reduce loss severity and, in its view, influence insurability and pricing over time.
NIBA has been in discussions with committee chair Senator Deborah O’Neill ahead of the hearing. During its appearance, the association is expected to explain how its recommendations relate to the role of brokers in the small business and not-for-profit markets, and how regulatory, tax, and procurement settings intersect with insurance availability and affordability for those segments.
