ATHRA insurance report 2024-2025

Report by Paul Rollason, ATHRA Insurance Officer

The 2024-25 year has been somewhat an easier journey than the previous 3.5 years with almost all ATHRA members requiring PLI (Public Liability Insurance) cover taking advantage of the ATHRA-Marsh offer. Members are saving a substantial amount of money whilst having the confidence of extremely good terms and policy wording (best in Australia) backed by one of the world’s largest insurance brokers – Marsh.

As most members are aware, the ATHRA Members PLI scheme was developed in 2020/21, during a time whereby the main insurer/broker for ATHRA members was increasing rates significantly, forcing many smaller organisations to either run without insurance and/or close their operations. Whilst pricing was a major impetus for change, there were other aspects that needed to be addressed as well, namely:

• Responsive and timely service
• Holistic members’ insurance program
• Best in class policy wording
• Subject matter expertise
• Simplicity and ease of transaction
• Minimal rate increases, in comparison to the general market
• A true partnership with ATHRA and its members

Throughout 2020/21, ATHRA and Marsh developed a facility and service offering that ticked all the boxes, partnering with the insurer, Canopius. The concept of strength in numbers was a big sell to the insurer. Seeing the potential in having all of ATHRA’s members insured, consistently, meant that there would be a premium pool that can withstand future claims, and allowed for better rates and coverage to be put forward by the insurer. This greatly benefitted all ATHRA members, as we saw the switch be made across to the ATHRA facility via Marsh over the past 3 years.

This sense of community driven via strength in numbers, has seen strong premium growth over the past 3 years. We have also seen a low frequency of claim from the facility. As consequence to this, Marsh have been able to negotiate a loyalty discount for all ATHRA members, who renew their policies, over the next 12 months. This loyalty discount has seen your Public Liability rate slashed by 10%. The criteria for the discount are as follows:-

• Must be a financial ATHRA member
• Must have remained insured consistently from the time of purchase (which we believe to be all members)
• Must be claims-free over the past 3 years
• Discount applies to the primary level of $30 million PL only
  (does not include excess liability premiums as these fall outside of the facility via Canopius)

As it sounds, this is a discount for ongoing loyalty, so it only applies to members who continue to stay within the ATHRA facility. Dependant on the success of the facility in 2026 and beyond, we may see further loyalty discounts given back to ATHRA members. Once again, strength in numbers plays a big part in the ongoing success of the facility, and in kind, the benefits that members receive back.

This is an outstanding result. It is not just 10% each group is saving, it is 10% discount plus there is no premium increase of another 6-10% thus the overall saving is more like 18% which is substantial.

During the year we have had 5 additional groups join the insurance scheme and more are joining at the time of writing this report.

For the first 4 years, ATHRA members have saved over $1.746M in PLI premiums alone.

The forms of insurance provided to ATHRA Members for the 2024-25 period include:-

• Public Liability Insurance (PLI) – 71 policies (66 policies in 2023-24)
• Association Liability/Management Liability Insurance (formerly known as Director’s Insurance) – 16 policies (no change)
• Provides financial protection for your business if management is found to have acted wrongfully towards an employee.
• Covers claims made against the company itself and its directors and officers.
• Protects against risks related to wrongful acts, breach of fiduciary duty, negligence, or other errors in managerial duties.
• Personal Accident Insurance (formerly known as Volunteer’s Insurance) – 33 policies (31 Policies 2023-24)
• Business Pack Insurance (insures against business loss such as business interruption) – 5 policies (no change)
• Industrial Special Risk (ISR) – broad form of insurance designed to protect businesses from damage to physical assets and business interruption caused by unforeseen circumstances. – 1 policy (no change)
• Mobile Plant Insurance – 3 policies (no change)
• Rollingstock Insurance – 5 policies (6 policies in 2023-24)
• Excess Liability Insurance – PLI cover above the $30M cover offered by Canopius – 5 policies
• Cyber Insurance – 0 policies

To date, the following data summarise what Marsh insures for ATHRA members.

The policy count for each PLI category of sum insured include:

What is staggering is that most members are not taking Association Liability Insurance which helps protect the organisation and board members of each organisation against personal loss if there is a claim against the management of the organisation. That is if your organisation is sued and you don’t have Association Liability

Insurance, then each board/executive member maybe personally liable. Just because you are an incorporated association, your directors are not automatically protected.

The increase to the Management Liability Insurance and Personal Accident Insurance has been kept to a 0–5% increase. Some members have had their policies rolled over (i.e. 0% increase). Industry standard is 10–18%

increase annually. Once again, the benefit of being an ATHRA member.

Property insurance has also been kept to a 0–5% increase.

Other classes of insurance offered also saw rises of 0–5%. Most were closer to 0% and the slight increases were where turnover was increased significantly.

Marsh has committed to writing 4 articles per year to benefit ATHRA members along with presenting at the next ATHRA Conference.

Insurance on the international front (through WATTRAIN[1]) has gone very quiet, however I was approached by FEDECRail[2] to give my presentation to several members. There was some initial interest but no follow up at this stage.

The presentation was well received but I feel some organisations are still in denial.

In closing, I urge all ATHRA members to continue to stick together under the ATHRA/Marsh umbrella and you will continue to benefit from great service, strong policies and affordable premiums. In the long term you will prosper, and you are being backed by one of the largest insurance brokering firms in the world.

Sure, you might be able to find a cheaper policy (some with poor policy wording), but as some members have already experienced, it is only cheaper in the first year and then prices increase significantly.

Remember, united we are stronger than fighting alone.

[1] The World Alliance of Tourist Trams and Trains https://www.wattrain.net/

[2] European Federation of Museum & Tourist Railways https://fedecrail.org/