Every day now… some Australian community group is cancelling an event… because it can't afford public liability insurance.

An on-line survey of 700 not-for-profit groups makes it clear they think the financial burdens being imposed on them by insurers are grossly unfair. The survey by lobby group OurCommunity.com.au found only 4% of respondents had made a public liability claim in the last five years.

It suggests that some insurers are taking maximum advantage of the sellers' market created by the contraction of supply following the collapse of HIH in March 2001.

Sudden, exorbitant increases in premiums (regardless of claims history); inability to find insurance at any price; excesses and deductibles increased to an extent that makes the insured effectively self-insured for all but the biggest risks.

Increases in insurance premiums are ruining the whole social fabric of communities.

We are still receiving phone calls and emails from businesses around Australia about insurance. We are almost drowning in the volume.

… we've got a market that's inefficient, it's poorly regulated, it's extremely opaque, and they're not subject to unfair contract terms.

Effectively what's happening, though, is a lot of the small businesses are uninsured or underinsured. They either can't get the insurance at all; if they can get it, they can't afford it; or if they can get it and afford it, it doesn't even cover the activities they need to have covered.

It's not a question of getting competitive quotes; it's a question of getting any quote at all.

The committee heard that the entire business model of insurance companies relies on them being able to accurately price risk... However, this becomes difficult during a period of rapid change.

The committee also heard that certain industries are now effectively uninsurable due to a perceived inability to accurately price risk for those industries.

The committee acknowledges that a significant gap in evidence exists with respect to publicly available data in this area, and further, the existing evidence base about insurance covers a relatively short timeframe.

We have heard enough. It is time for a commitment to change.

The committee heard significant evidence from industry bodies, venues, promoters, and artists about the extensive harm and damage caused by the current insurance environment.

Of particular concern were those who could not get coverage regardless of their willingness to pay. It appears that insurers have entirely withdrawn from certain types of events and certain regions.

...the committee agrees that the government must take appropriate action to protect this important sector.

...ultimately the key evidence presented to the committee in relation to insurance for the live music sector shows that the market is not working.

Price increases have been the most significant change in public liability insurance for hospitality and events in recent years.

The impact of higher insurance premiums on the broader economy is significant.

One of the challenges in attempting to address this issue is that it is ultimately a problem of market failure.

Overall, 88% of music festival organisers surveyed reported that insurance was an obstacle for them.

Almost half (48%) of respondents reported that they had to make changes to their festivals to be able to obtain insurance.

The insurance industry has proven to be a blunt instrument in terms of risk identification. This results in perverse outcomes.

…the risk is that the Australian live music landscape will become increasingly homogenised, dominated by large, well-funded events at the expense of smaller, unique events.

Without action, there is a danger that the current insurance environment will result in lower-risk programs and fewer activities overall, with a resulting impact on the vibrancy of the Australian live music landscape.