Northern Australian Marinas Appeal for Relief from Escalating Insurance Premiums

The Marina Industries Association (MIA) has highlighted the severe impact of these escalating costs, noting that some policyholders are now burdened with cyclone excesses reaching up to half a million dollars. Such financial pressures threaten the viability of marinas, which are integral to the marine and tourism sectors in regional coastal communities.

In response, the MIA has urged the Federal Government to take immediate action by expanding the cyclone reinsurance pool to include marine insurance or by providing premium subsidies until the scheduled review of the reinsurance pool in 2025. MIA President Andrew Chapman emphasized the urgency of the situation, stating, "We specifically ask the Government to include marine insurance in the cyclone reinsurance pool immediately."

The association warns that without intervention, the rising insurance costs will be passed on to related marine and tourism operators, leading to inflationary spirals and jeopardizing the sustainability of businesses that are the backbone of many regional coastal communities in northern Australia.

High excesses and a level of self-insurance mean marina businesses are burdened with setting aside funds as unproductive security to cover potential cyclone events, diverting resources that could otherwise be reinvested into business development. Premiums have been rising for many years, particularly after cyclone events including Debbie and Yasi.

The Australian Consumers Insurance Lobby (ACIL) supports the MIA's call for marine insurance to be included in the cyclone pool, recognizing the critical need for affordable insurance solutions to sustain the marine industry in cyclone-prone regions.

As the 2025 review of the cyclone reinsurance pool approaches, stakeholders are hopeful that the government will take proactive measures to address the pressing concerns of marina operators and ensure the resilience of Australia's coastal economies.