The Indigenous Business Insurance Research Report, conducted by First Nations engagement consultancy Winangali as part of Allianz's Reconciliation Action Plan, dug into First Nations small business owners' experiences, attitudes, and behaviour concerning their business insurance needs.
It found that while 95% of First Nations small business owners see insurance as a “must have” for their business, one in two (50%) said there were likely things that needed insurance of which they were unaware. A further 16% of the respondents did not have insurance at all, a concerning jump to 23% for less established businesses.
The respondents also said they mainly sourced insurance-related information from other businesses they know and trust (66%) and insurance brokers (54%).
Sema Musson, general manager for conduct and customer advocacy at Allianz, said the insurer teamed up with Winangali to better understand insurers' role in supporting the growing sector.
“First Nations businesses provide important social and economic benefits to First Nations communities through employment, empowerment, and self-determination,” Musson said. “We know that business insurance is a key aspect of building successful and resilient businesses.”
In 2021, First Nations businesses registered through Supply Nation turned over $1.03 billion. Despite the property loss becoming a significant concern for First Nations small business owners, only 21% had general property cover as compared to 42% of Australian small businesses broadly, the report noted.
The report also found that First Nations small business owners believe cost is not the most important factor when purchasing insurance, with nearly 90% of the respondents indicating that having products that suit their business needs is extremely important.
Meanwhile, almost 70% of First Nations small business owners said having an insurance company that understands First Nations business is crucial in their decision. However, fewer than one in 10 (8%) First Nations small business owners 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. The decision by Allianz to do this research is insightful and will benefit our mob, our businesses, and our communities,” said Winangali managing director Noel Niddrie. “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. It is the pursuit of facts that will allow us to break down the myths that persist about Australia's first peoples.”
Allianz has launched the Home-Based Insurance Toolkit to help small business owners better understand the insurance product required for businesses operating at home.
