The Cycling Victoria Board has voted to absorb the majority of insurance premium increases from July 1, 2019.
This follows Cycling Australia’s announcement on Friday that insurance premiums would rise by approximately 46% from July 1,2019 with the majority of the increase (80%) to be passed directly on to the State Sporting Organisations.
“Unfortunately, there’s no good outcome here for our members,” explained Lisa Byrne, President of Cycling Victoria. “Either we pass on the full amount and they are out of pocket immediately or we absorb the costs and our Profit and Loss is hit by $100k.”
“Given we are a not-for-profit and target only to break-even each year, this means we essentially have $100k less to run programs and support services, which is unacceptable. In the short term, we will be reducing our reserves to fund this gap while we consider other funding options.”
“Cycling Victoria calls on Cycling Australia to deliver value to its members through a negotiated insurance reduction. Indeed, this would be a great way for Cycling Australia to demonstrate the value that the OneCycling model can unlock for members.”
The insurance premium changes mean that membership for our Victoria-based members will increase from July 1, 2019 by approximately 6% on average.