It has already started to happen. Over the past week I have been contacted by both insureds and brokers advising that they/their clients have elected to drop business interruption or elect not to fully insure due to the increased financial burden created by the massive increase in Emergency Services Levy.
I try and explain the risk that the business is taking on by not insuring business interruption or their assets fully but the insured’s believe that they cannot increase their prices in the current economic climate.
This is an appalling and untenable situation that is putting the New South Wales economy and many businesses, and the workers they employ at financial risk.
I urge any broker or insured who encounter this situation need to write to their local member and clearly set out the consequences of the government’s approach to funding the fire service levy.
If the increase in charges is justifiable then it would be fairer if everyone contributed to the cost and insurance for those that have it would not be singled out as the way to avoid paying the levy.
Of course the fewer people that have full insurance means the percentage of premium charged needs to go up again to cover those who have opted out.
And politicians wonder why the public have lost faith and trust in government!