Small Business Ombudsman admits failure to achieve attractions industry DMF

Australian Small Business and Family Enterprise Ombudsman (ASBFEO) Bruce Billson has conceded failure in his pursuit of a Discretionary Mutual Fund for the attractions and amusement industry.

In December 2021, Billson backed a proposal by the Australian Amusement, Leisure and Recreation Association (AALARA) to create a Discretionary Mutual Fund (DMF) as a solution to lack of affordable insurance available for attractions industry operators - including adventure tourism, carnival and showground amusements, children’s rides, inflatables, laser tag, theme parks, transportable rides and waterparks.

Following extensive industry research, Billson’s report The Show Must Go On - released in his capacity as ASBFEO - called for Federal Government backing for the creation of an attractions industry DMF as a solution to the public liability crisis.

At the time of the release of The Show Must Go On, Billson suggested that in a hardened global insurance market establishing “a DMF as the only current workable solution to the immediate need for coverage in the sector.”

Billson backed this up in February this year with a new report Additional Insights Supporting a Discretionary Mutual Fund for the Amusement, Leisure and Recreation Industry, which highlighted ongoing difficulties faced by industry operators.

However, as reported today by the ABC, Billson has admitted that the initiative has not been successful in securing Federal Government support.

Despite industry operators continuing to face challenges in securing and maintaining insurance cover, Billson that he was “disappointed that … our recommendations weren't embraced.

"It's a very big challenge. There is a need for some innovation to find a way forward, and we thought a Discretionary Mutual Fund was the most practical, durable way.”

However, the push for a DMF was not backed leading industry insurer Sportscover.

Speaking to Insurance Business Australia (IBA) and the InsuranceNews website after the release of The Show Must Go On, Sportscover Australia Chief Executive, Simon Allatson said that establishing a DMF for the attractions sector was not the right course of action, expressing surprise that Billson was supporting an attractions sector-based DMF.

Allatson advised “it was our submission (to the Ombudsman) that a stronger focus on quality assurance, risk management, safety protocols, and training would provide greater security for the sector.

“As in any market, there are good risks and poor risks. A DMF should not be established to subsidise poor risks at the expense of operators who are operating safely and professionally.”

There remains the possibility that key AALARA members and stakeholders in the wider industry could fund a DMF without Government support.

Images: Australian Small Business and Family Enterprise Ombudsman Bruce Billson (top) and the cover of The Show Must Go On report (below). Credit: ASBFEO.