With grey nomads commonly complaining about paying for van park facilities that they don’t want, it would be easy to think that the gradual disappearance of jumping pillows would be a cause for celebration … but it definitely isn’t!
A growing number of park operators are removing pillows due to the increasing difficulty in getting insurance cover, and the problem goes a lot deeper than pillows.
The Caravan Industry Association of Australia (CIAA) says two recent surveys it conducted showed just how much of a challenge insurance affordability was becoming.
More than half of the surveyed caravan park operators reported a surge in insurance premiums over the preceding 12 months.
Some bouncing pillows are on their way out ... but this one is still firmly in place. PIC: Jezza
On average, these premiums escalated by 15%- 20%, but for certain operators, the increase exceeded 400%.
A survey conducted earlier this year revealed 52% of operators had diminished confidence in their ability to obtain liability insurance during their next renewal, while 61% had concerns over the accessibility of property insurance.
Clearly, this has potential implications for grey nomads and other caravan park guests. With parks facing higher insurance costs, there is the likelihood that at least some of these costs will be passed on to consumers.
And then, of course, if the situation continues to worsen, there is always the possibility that some parks will simply cease to be viable.
Leading insurer, IAG, said a number of high-risk factors meant it was now only providing insurance for van parks in very limited circumstances.
“From a liability perspective, the key risks are the potential for injuries to holidaymakers from playgrounds, pools, trampolines and bouncy pillows, and potential issues in relation to roadways and paths through the property (for example, cracked footpaths),” a spokesperson said. “From a severe weather perspective, caravan parks are most likely to be in regional areas and face bushfire risk, flood risk if they’re on a river, or the high risk of storm damage if they’re located on the coast.”
The CIAA said a culture of aggressive legal solicitation, which had led to opportunistic claims, was also contributing to difficulties in some parks obtaining insurance.
In an effort to find solutions, the CIAA – working with the insurance industry – recently released an industry road map with a five-point strategy. CIAA CEO, Stuart Lamont, said it was an approach ‘that embraces data-driven risk mitigation measures, deeper risk analysis, universal and centralised technology solutions for data and education, and awareness to embrace an even better risk culture’.
Critical to the approach is fostering a better understanding among insurers about the caravan park industry.
The CIAA says that an industry survey conducted this year revealed that, among caravan parks with some form of business insurance, 65% were unable to secure flood coverage, 48% lacked cyclone cover, and 25% faced challenges in obtaining bushfire coverage. And it says more than 79% of these surveyed businesses were not located in disaster zones!
“These statistics underscore the lack of individualisation in insurers’ approaches and highlight the adverse impact of a blanket scattergun approach on insurance provision,” the CIAA said.
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We’ve noticed a massive increase in elderly Grey Nomads using jumping pillows at caravan parks since the pandemic.
With massive rises in park fees they’re probably trying to get their moneys worth by using everything that’s available onsite. LOL.