Bright and District Chamber of Commerce has told a federal parliamentary inquiry of the effect rising premiums, reduced insurer competition and declining availability of cover are having on local businesses.

Chamber president Marcus Warner and secretary Bruce Hore travelled to Melbourne on Tuesday to appear before parliament’s Joint Committee on Corporations and Financial Services as part of its national inquiry into small business insurance.

The invitation follows the chamber’s detailed submission to the inquiry, which outlined the growing insurance challenges faced by almost 100 small and micro businesses across Bright, Porepunkah, Wandiligong, Harrietville and surrounding communities, including accommodation providers, hospitality businesses, retailers, trades, agricultural enterprises, professional services, tourism operators and outdoor recreation businesses.

Mr Warner said while some buisnesses have seen premiums increase by hundreds of per cent, others have been unable to obtain appropriate cover at any price, and some tourism operators have been forced to close activities because they cannot secure the insurance required to operate.

“Our role is to make clear these are not isolated cases...they are symptoms of broader structural problems in the insurance market that are placing increasing pressure on regional economies,” he said.

The chamber also raised concerns about the way regional and specialist businesses can be assessed through broad postcode and industry classifications that do not adequately reflect the actual risk of the individual property or activity.

“We accept the Alpine Shire is exposed to genuine bushfire, flood and severe weather risk and we are not asking insurers to ignore those risks or provide artificially cheap insurance," he said.

"We are asking for risk to be assessed accurately, locally and transparently, with proper recognition of claims history and verified mitigation.”

The chamber also asked the committee to consider practical reforms, including:

• nationally consistent and proportionate public liability requirements for businesses and community events;

• more appropriate insurance options for seasonal tourism and adventure businesses;

• clearer explanations of major premium increases, exclusions and non-renewals;

• greater recognition of businesses that invest in fire protection, vegetation management, flood resilience, safety systems and emergency planning;

• better access to specialist underwriting for regional and adventure tourism operators;

• improved transparency around the effect of low-value claims and claims management practices on premiums; and

• consideration of alternative insurance models and targeted government-supported reinsurance where commercial markets have demonstrably failed.

The chamber acknowledged the support of local businesses, Alpine Shire Council and Ovens Valley Insurance Brokers, who helped inform its submission and preparation for the hearing.