WEEKEND snowfalls may have heightened expectations for a great snow season ahead, but it has done little to allay insurance concerns that some fear threatens the future viability of many clubs, apartments and businesses at our alpine resorts of Mt Buller and Mt Stirling.

More than six months ago Victorian Snowsports Association president Dave Clark raised industry concerns over many major insurers having decided not to offer cover to alpine properties, following the 2019/20 bushfire season.

Since then the situation has only got worse, according to Chris Hollier of the Mt Buller Ratepayers Association (MBRA), who has been responsible for heading up the 'building insurance project' for the last few years.

"Many underwriters have ceased to insure alpine properties," said Mr Hollier.

"On the back of this, premium rates increased on average two to four times.

"In addition, some of the remaining underwriters ceased to cover bushfires, even though they massively increased premiums.

"The MBRA ran a building insurance questionnaire over 12 months ago; we had over 133 responses.

"These respondents had a combined requirement for $760m of building insurance.

"The information on this questionnaire led to us to estimating that 50 per cent of properties are now not fully insured for bushfire cover.

"This highlights a material market failure.

"It's worth noting that there has never been a building lost to a bushfire at Mt Buller.

"There's also been a massive increase in Mt Buller's capacity to fight bushfires, with a new dam and many more snow guns plus doubling of available firefighting aircraft."

Mr Hollier said these concerns have been raised with the State Government via the Department of Environment, Land, Water and Planning (DELWP), who said they would refer concerns onto the Victorian Managed Insurance Authority (VMIA) and their broker, along with many state and federal MPs.

But two years on and nothing has happened with it.

Mr Hollier added that they believe there is a solution to the problem, proposing that the State Government support a mutual solution (discretionary trust or managed investment scheme) which is similar to self–insurance.

"At our request, Picnic – a Sydney–based company experienced in setting up mutuals – has invested significant time in preparing a solution which they are happy to manage," he said.

"Unfortunately, but understandably, Picnic are not prepared to progress further until the following two items are resolved, ideally by the government:

a. Victorian Government accepts a mutual as the insurance required on all alpine leases, which currently required conventional insurance policy; and

b. Seed capital to commence the mutual.

"We believe that both of these points could be resolved quickly and easily by the Victorian Government.

"The last two summer seasons have been significantly low fire risks in all alpine areas.

"Hopefully, we don't have to wait for an uninsured disaster to occur somewhere before government intervention."

North East state and federal MPs, Tim McCurdy (MLA, Ovens Valley), Bill Tilley (MLA, Benambra), Cindy McLeish (MLA, Eildon) and Helen Haines (MHR, Indi) have raised the issue over the past year with the State Government.

Mr McCurdy recently wrote to Assistant Treasurer Danny Pearson to highlight the contention of a "cataclysmic market failure" and the need for government to negotiate a "reasonable and affordable outcome for businesses and resort boards in the alpine region".

He urged Mr Pearson to assist the VMIA, Insurance Council, resort boards and local businesses of the alpine region in finding an affordable resolution which helps achieve their "legal obligations and insurance compliance".

"We need to act now, before the situation spirals out of control, and a potentially devastating event occurs that will put many of these businesses, and by association, their owners and employees' livelihoods, in jeopardy."

The Courier contacted Mr Pearson's office and a government spokesperson said the "government's insurance adviser, the Victorian Managed Insurance Authority, is working with the Department of Environment, Land, Water and Planning to better understand the insurance needs in alpine resort areas".

We were informed government agencies are working with crown land leaseholders on their insurance difficulties and that agencies were also working to reduce the risk of bushfires in alpine resort areas through actions including planned burns, asset management, snow machine investments and asset sprinkler systems.