The Australian Competition and Consumer Commission (ACCC) has granted temporary permission for eligible small businesses to defer their insurance premium payments by six months.

Permission has been granted to eligible business customers suffering hardship as a result of the impacts of COVID-19 whose insurance premiums fall before 30 June 2020.

The extension means insurers and brokers will be allowed to keep relief measures in place until 31 December 2020.

Authorisation from the ACCC to extend coordination of relief measures also allows insurance companies and brokers to continue offering business customers refunds for premiums on insurance policies that had to be cancelled as a result of COVID-19, such as travel insurance.

Eligible small and large businesses who purchased a travel insurance policy prior to 30 June 2020 and have had their travel plans cancelled due to COVID-19 will be entitled to a credit or refund for any unused premium, with no administration or cancellation fees to be accrued.

ACCC Commissioner Stephen Ridgeway said it was critical that small and medium businesses impacted by the effects of COVID-19 received the financial relief required to support them through this difficult period.

“There is clearly a need for these relief measures to continue as many small and medium-size Australian businesses continue to experience unprecedented financial hardship due to the COVID-19 pandemic,” said Mr Ridgeway.

“There is a public benefit in authorising cooperation about these measures until the end of June 2020, as it will provide greater transparency and consistency of relief for small businesses. There is minimal, if any, public detriment.”

“However, the ACCC will continue to monitor this authorisation to ensure it does not result in unintended consequences impacting competition in the insurance industry.”

Authorisation for the measures will apply to Suncorp, Allianz, QBE Insurance, and other insurance brokers who have been notified by the ACCC.

Source: Australian Competition and Consumer Commission | Insurers to be authorised to continue relief measures for small businesses

11 June 2020