The Caravan Industry Association of Australia has released its industry road map, consisting of a five-point strategy to help guide caravan parks through a hard market cycle in the insurance industry.
Working with the insurance industry and key national bodies, Caravan Industry Association of Australia is embracing risk mitigation, data-driven and technology approach to answer insurance challenges in the sector.
The industry has recently seen increasing pressure on public liability and property insurance policies. This has had a flow-on effect to the over 1400 caravan parks across the country, with many facing large premium increases or either finding it extremely difficult in renewing policies, or in some instances removing infrastructure assets to maintain cover.
Caravan Industry Association of Australia CEO, Stuart Lamont, said: “We cannot deny the industry has faced challenges of late, as an industry we recognised the insurance market turning towards a harder cycle seeing firmer pricing elements and more conservative approaches to risk. We knew we needed to be practical and pragmatic in our approach to help guide industry through these downward pressures through a proactive risk mitigation approach, while also assisting the insurance industry better understand the industry’s risk profile.”
“Working with the insurance industry and caravan industry stakeholders we have developed a collaborative five-point approach to caravan park insurance. An industry approach that embraces data driven risk mitigation measures, deeper risk analysis, universal and centralised technology solutions for data and education, and awareness to embrace an even better risk culture.”
The Industry Road Map sets to inform and educate both the broader elements of the insurance industry and caravan parks across the country. The Industry Roadmap has already started to pay minor dividends through early engagements on certain pieces of par infrastructure coverage. The increase in risk articulation has shown a willingness for liquidity to flow back to the market.
“This Road Map isn’t the silver bullet in isolation but it is a great start. There is still a long way to go as we educate both industries, sharpening caravan parks risk profiles and mitigation strategies. Parks provide a marvellous environment with great value for money for families, yet we aren’t very good at telling insurers why we are safe. That’s what we need to start doing better,” said Stuart.
Caravan Industry Association of Australia looks forward to working closely with the Federal Government, Insurance Council of Australia, insurance brokers and industry businesses on bringing the Road Map to life.
