The Caravan Industry Association of Australia (CIAA) has recently introduced an industry roadmap, a strategic five-point plan, to assist caravan parks in navigating the tumultuous waters of the insurance industry’s “hard market cycle.”
Developed in collaboration with the insurance sector and key national entities, the roadmap emphasizes the importance of risk mitigation, a data-driven approach, and technological advancements to address the prevalent insurance-related challenges in the caravan sector.
The caravan industry has been under immense pressure lately, especially concerning public liability and property insurance policies. Over 1400 caravan parks across Australia have felt the brunt of this, facing substantial premium hikes and challenges in policy renewals, according to the Hotel Conversation.
Some parks, in a bid to maintain coverage, have had to make the tough decision of removing infrastructure assets. Stuart Lamont, the CEO of CIAA, sheds light on the gravity of the situation, emphasizing the urgent need for proactive risk mitigation strategies.
The Industry Road Map is not just a strategy but an educational tool. It aims to enlighten both the insurance sector and caravan parks about the challenges and potential solutions. Initial engagements with stakeholders have shown promising results, indicating a positive trajectory for the industry.
However, the roadmap is just the beginning. The association is actively seeking collaboration with the Federal Government, the Insurance Council of Australia, insurance brokers, and industry businesses to ensure the roadmap’s success and long-term sustainability.
The broader insurance landscape for caravan parks in Australia reveals a grim picture. Many parks, like the family-friendly club in Alice Springs, have had to remove popular amenities like jumping pillows due to insurance refusals, impacting local communities and children’s development.
The Insurance Council of Australia attributes these refusals to increased claims from extreme weather events and the introduction of riskier amenities in caravan parks. However, larger entities like BIG4 Holiday Parks have managed to retain most of their amenities, albeit facing inconsistencies in insurance decisions.
The Victorian Caravan Parks Association, representing a significant portion of caravan parks, has been vocal about the need for government intervention, especially concerning “slip and trip matters.” They’ve also been at the forefront of educating park owners on improving risk management practices.
The community’s response has been commendable. In places like Alice Springs, community members are brainstorming alternatives to amenities like jumping pillows, considering options that are both fun and insurable, such as basketball courts or soccer fields.
The CIAA remains optimistic. With continued efforts, collaborations, and the implementation of the Industry Road Map, they hope to find a sustainable solution by early 2024, ensuring that caravan parks remain insurable and continue to thrive.
Click here to view the Caravan Insurance Industry Roadmap.