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Legislative Assembly for the ACT: 2002 Week 13 Hansard (19 November) . . Page.. 3738 ..

MR QUINLAN (continuing):

are driven by the world market, so that is a perspective on just how much freedom we may have to move in the long run. Certainly the states have insisted that the Commonwealth involve the ACCC in monitoring the insurance industry to ensure, within the capacity of the ACCC, that the consumer is protected. At this point, we have to accept that the insurance industry, having pulled back, is now to some extent in the driver's seat as to when and at what rate it may re-enter the market.

At the ACT level, government initiatives have included a risk advisory website that has been widely praised by local businesses and the community. It includes a unique world-first web technology capability for users of the site to identify their activities, rate those against a risk profiler online, and make decisions about a future course and engage online Australian standards, compliant risk identification, and planning and management tools. Agreement has been reached with Standards Australia to support the website with detailed instructional material on risk identification, planning and minimisation, and this is under development, or at least being enhanced, as I speak.

Agreement in principle has been reached with a group of insurance providers to provide much-needed public liability insurance to cover ACT non-profit and community groups. The ACT will be the first jurisdiction, along with New South Wales, to receive the scheme. However, commencement and continuation of the scheme is still dependent on several variables yet to be finalised. I will announce commencement of the scheme and its details as soon as I can. But, let me say, we are very confident that we will get a scheme that will accommodate most people, virtually all. We cannot guarantee absolute coverage at this stage, but we are working to make sure that that scheme is as wide as possible. The scheme involves $10 million of public liability cover, with a $1,000 deductible, which some organisations still might find difficult. The product is limited to the non-profit and community sector, and there is a $2 million upper limit on the yearly turnover of any one qualifying organisation.

The group scheme is unique. Two specific provisions of the policy are important to outline. The first will require policy holders to exercise fiscal responsibility, and the second will require policy holders to engage in risk management techniques. I think it has become part of the bleeding obvious, in terms of this insurance crisis, that to receive insurance within the means of organisations, risk management techniques are vital. The government anticipated this requirement by building the risk technology I mentioned earlier in my department's risk advisory website.

Members will recall that I outlined the government's initial approach to business assistance in my previous statement to the Assembly. With particular relevance to local business, a specialist, informal interdepartmental group has been set up to deliver immediate policy advice, including market intervention, legislation and other strategies in response to the insurance crisis. I can foreshadow the introduction of new legislation. Presently, the group is examining the security industry, equine industries and the auditing profession, all of which are facing difficulty with public liability or professional liability insurance.

Members will no doubt be interested to hear some of the observations on the state of the insurance market generally. In terms of public liability, the capital shortfall created by the collapse of HIH has been very slowly taken up. It appears to actuaries Cumpston Sergeant that the industry's capital position has now stabilised. Recovery is sporadic, and

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