NIBA / Special Feature
ANOTHER FRAMEWORK THAT WAS PUBLISHED RECENTLY TO HELP TOURISM BUSINESSES BETTER UNDERSTAND RISK IS AS ISO 4980:2023: BENEFIT-RISK ASSESSMENT FOR SPORTS AND RECREATIONAL FACILITIES, ACTIVITIES, AND EQUIPMENT . WORKING TO STANDARDS – BUT CHANGE IS STILL NEEDED
Greg Shallard says, “The paradigm shift in 4980 is acknowledging there are benefits in risk empowering the way operators undertake their business operations. 4980 provides a new way of framing our relationship with risk as a society, and has been at the forefront of a real change in thinking in this space. “For success in the future, we need to advocate, as a broking industry, for all stakeholders to adopt industry standards like 4980 and the Australian Adventure Activity Standard, so that we all view risk through the same lens that the tourism industry does. “One of the biggest challenges which continues is around our legal system. Increased litigation, courts awarding large payouts and climbing claims costs continue to hurt everyone; resulting in Australians missing out on the opportunity to experience the benefits of the outdoors that our country has to offer. “Insurance at its core is two numbers, money in vs money out. If we want to keep premiums sustainable and coverage available, we all have to work together to improve the quality of risk and also look at how we reduce the impact of claims. “There is still one opportunity that can make a long lasting impact – do we need another layer of tort reform for recreational activities to improve the climate that tourism businesses are operating in? This could be our biggest challenge, but largest opportunity for change.”
“As a tour operator, we face a constantly shifting landscape, and managing emerging risks is becoming more complex. Cyber threats are a major concern, from protecting customer data to ensuring our booking and operational systems remain secure. At the same time, political unrest and sudden regulatory changes in destinations can disrupt itineraries and impact the safety of our clients and staff. “The reality is that things can change very quickly in our industry. A region that is stable one week can become uncertain the next, and we need to be prepared with flexible insurance coverage, robust contingency planning, and close support from our brokers to navigate these challenges.
“Proactive risk management is essential, not just to protect the business, but to ensure our clients can travel with confidence, even in unpredictable circumstances.” From the perspective of Lori Modde, brokers have an ever-important role to play in further evolving the sector and helping to formulate the right solutions. “It's really important for brokers, not only to be very knowledgeable of the industry, but also to be part of industry conversations. “It's really impressive when you see insurance brokers at that table, because they can help us all get to the best
outcome, as much as any business or operator in that room.”
And there’s a significant lesson in there. In NIBA’s Ready or Reacting Report, only 55% of brokers felt they were ready to be a true ‘strategic adviser’. By specialising in sectors, and demonstrating that knowledge of the industry, as well as a commitment to the success and evolution of it, the move from transactional broker to trusted adviser is far more achievable. Yes, it’s playing the long game – but it’s a long game with an incredibly well- defined purpose.
58 / INSURANCE ADVISER OCTOBER 2025
Made with FlippingBook Digital Publishing Software