The Marina Industries Association (MIA) has been at the forefront of this advocacy, urging the Federal Government to expand the cyclone reinsurance pool to include marine insurance. Alternatively, the MIA suggests implementing premium subsidies until a comprehensive review of the reinsurance pool is conducted in 2025.
Andrew Chapman, President of the MIA, emphasized the broader implications of the crisis, stating that the sustainability of marinas has knock-on effects to marine and tourism businesses, which are the backbone of many regional coastal communities in Northern Australia.
The escalating costs are not only affecting marina operators but also have a ripple effect on related marine and tourism businesses. These surging costs are passed on to related marine and tourism operators, leading to inflationary spirals, and jeopardizing their business sustainability and Australia as an affordable tourism destination.
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. Some marinas have reported well over 300% increases in the 5-7 years and they are seeing continuing year-on-year increases.
The Australian Consumers Insurance Lobby (ACIL) supports the MIA's call for marine insurance to be included in the cyclone pool, highlighting the widespread concern over the issue.
As the industry awaits a response from the government, marina operators continue to grapple with the financial challenges posed by escalating insurance costs. The outcome of this advocacy will have significant implications for the future of marinas and the broader marine and tourism sectors in Northern Australia.
