No clear solutions for business were presented at Wednesday's ministerial meeting on public liability premiums.
A joint ministerial statement says due to the complexity of the issues surrounding the recent massive hikes in insurance premiums, the problems need to be tackled against two frameworks - rising costs and availability of insurance.
"Ministers recognised that there were no easy solutions but that work will commence immediately," the statement says.
However, the state government must quickly introduce legislation to back up the resolutions, Queensland Opposition leader Mike Horan says.
"The social fabric of Queensland communities and the future of small business is under threat from the insurance crisis – the National Party will maintain pressure on the government on urgent legislative reform," Horan says.
Among the solutions proposed are encouraging group buying and structured settlements instead of lump payments.
The resolutions are:
- make legislative changes to encourage structured settlements for personal-injury payments
- reform claim costs, including protecting volunteers, community and appropriate sporting organisations from actions as well as investigating broadly-based tort reform and legal systems costs and practices reform
- examining the Trade Practices and Fair Trading Acts to look at the extent which individuals can legally assume personal responsibility for high-risk activities
- encouraging group buying where appropriate
- asking the insurance industry to collect more detailed information on claims experience through co-operative industry arrangements
- widening data collection on the insurance industry and examining the impact of new prudential requirements for general insurers
- sharing between states and territories of risk-management strategies introduced in their jurisdiction that have made insurance more available and affordable.
Queensland Treasurer Terry Mackenroth says he is satisfied with the progress made at the meeting.
"However, there is no quick-fix solution, it is an ongoing process and we are also looking at medium- and long-term strategies to address the problem," Mackenroth says.
Calls from business and insurance groups to reduce stamp duty on premiums as a quick fix to relieve pressure particularly on small business went unheeded.
Horan has criticised the group-pooling arrangements, saying a similar set-up for agricultural show societies has proven unworkable.
The meeting was convened by Minister for Revenue and Assistant Treasurer Senator Helen Coonan to work out a national solution to the problem.
The Head of Treasuries Group will be in charge of developing practical measures for the governments to consider by April 30.
The Council of Australian Governments meeting next week has also been asked to endorse the outcomes of the meeting.