“The goalposts have moved”: Insurers raise the bar for club insurance

by Bowls Australia on February 10, 2021

In an emerging nationwide trend, many clubs have encountered ‘bill shock’ at insurance renewal time in recent months.

After emerging from various mandated lockdowns around the country, many clubs have been caught off guard and unprepared for an increase to their annual insurance bill.

Bowls Australia’s preferred insurance broker and supporter of the Australian Jackaroos, BCIB Insurance Brokers, who are specialist insurance advisers to more than 750 clubs and associations nationally, have an informed opinion that a combination of low investment returns, rising re-insurance costs and successive years of high claim losses throughout Australia (care of floods, storms, bushfires in the last few years) have resulted in insurance for clubs coming under harsh scrutiny by underwriters of insurers.

BCIB also emphasised that the insurance industry conditions over the past six months are the toughest they have seen in 35 years in business.

Not only are increases in premium the new normal, but insurance companies are also imposing tougher conditions on clubs, especially those with past claims, inferior construction or located in storm or bushfire hotspots.

Many insurers have withdrawn from insuring clubs altogether, resulting in the insurers still offering cover being able to dictate terms.

BCIB Chief Operating Officer Brett Duprez highlighted BCIB’s long-standing reputation in the insurance industry as a specialist in the club sector that aids negotiations on increases, sourcing viable alternative insurers and options for clubs to consider when reviewing their insurances each year. 

However, Duprez stressed that clubs are now being asked to be proactive on issues such as continual facilities maintenance, loss prevention and implementing strong management practices.

“Insurers are now penalising clubs for claims they had three or four years ago and are looking closely at facility maintenance schedules, fire protection compliance requirements, employment practices and the overall construction and condition of the club – the goalposts have moved quite a bit over the past six months; what was once an acceptable risk for an insurer is suddenly out of favour,” Duprez said.

Affordability and availability of insurance is not just an issue for the club industry; it has been widely reported that caravan park operators are among the types of businesses who are unable to source any insurance at all, placing many at risk of closing down altogether.

Duprez is aware of a few clubs who have been forced into a similarly bleak predicament, but is confident that the problem will not become widespread.

Instead, he urges club to be prepared for increases, higher deductibles (for storm and bushfire claims) and to stick with insurers who are supporting clubs, even if it means paying a little more for that peace of mind that the club is protected by a proven and well-known insurer.

Bowls Australia’s advice is that clubs should budget appropriately over the coming financial years for their next insurance renewal considering the recent trends and expert industry analysis.

Clubs looking to discuss their insurance situation or seek advice can contact BCIB Chief Operating Officer Brett Duprez on 0427 344 920 or via brett@bcib.com.au.