New research commissioned by Allianz Australia has found that many First Nations small businesses do not have suitable insurance cover for their needs.
The Indigenous Business Insurance Research Report reveals that while 95 per cent of First Nations small-business owners agreed that insurance is a ‘must have’ for their business, 50 per cent said that there were likely things they needed insurance for that they weren’t aware of. A further 16 per cent do not have any insurance at all, with that number jumping to 23 per cent for businesses that were established within the last four years.
The research also notes that a significant portion of First Nations businesses are home-based start-ups and micro-businesses, and only 21 per cent have general property cover as compared to 42 per cent of Australian small businesses broadly.
“First Nations businesses provide important social and economic benefits to First Nations communities through employment, empowerment and self-determination,” Sema Musson, General Manager, Conduct and Customer Advocacy at Allianz Australia, said. “The disparity in general property insurance for First Nations small businesses indicates a particular risk for those businesses operating in the home and expecting coverage under their home and contents policy.
“Business stock may not be covered, or have very limited cover, as part of general home and contents insurance, and in addition, if an incident was to occur in a home where a small business operates, the home insurance cover may also be void,” Musson added.
Allianz Australia commissioned the study as part of its Reconciliation Action Plan, engaging Indigenous engagement consultancy Winangali to conduct research into the experiences, attitudes and behaviours of First Nations small businesses with respect to their business insurance needs.
The research also found that First Nations small business owners feel the cost of premiums is not the most important factor when purchasing insurance, with almost 90 per cent indicating that having products that suit their business needs is extremely important. Almost 70 per cent said that having an insurance company that understands First Nations business is extremely important in their decision, however, only eight per cent feel that insurance companies understand First Nations businesses.
“Indigenous business is a major growth sector and not enough research has been undertaken in this area,” Noel Niddrie, Managing Director of Winangali, said. “The decision by Allianz to do this research is insightful and will benefit our mob, our businesses and our communities.
“Too often First Nations peoples are seen as an economic burden and it is a revelation when corporate Australia sees the potential spending power of the emerging Indigenous middle class,” Niddrie added. “It is the pursuit of facts that will allow us to break down the myths that persist about Australia’s first peoples.”
The report was published to coincide with Allianz’s launch of their Home-Based Insurance Toolkit which is designed to help small-business owners better understand the cover required for businesses operating in the home. Reflecting the growing need for this information in the First Nations business community, this toolkit was created in collaboration with First Nations communications consultancy Iscariot Media.
