The Marina Industries Association (MIA) has highlighted that approximately 25% of Australia's 300 marinas are located in the northern region, playing a vital role in supporting marine and tourism industries. However, these marinas are finding it increasingly difficult to secure adequate insurance coverage, particularly for cyclone-related damages. Some operators have reported excesses imposed by insurers ranging from $500,000 to $1,000,000, making comprehensive coverage financially unfeasible.
In response to this escalating issue, the MIA and the Australian Consumers Insurance Lobby (ACIL) are urging the federal government to include marine insurance in the Cyclone Reinsurance Pool or, alternatively, to subsidise premiums for Northern Australian marinas until a comprehensive review is completed in 2025. MIA President Andrew Chapman stated, "We specifically ask the government to include marine insurance in the Cyclone Reinsurance Pool immediately. Alternatively, if the intention is to wait for the 2025 review as stated, the industry urges the government to subsidise insurance premiums for Northern Australia until the review is completed."
The rising insurance costs are not only affecting marina operators but also have broader implications for the regional economy. Increased premiums are leading to higher berthing fees, which in turn impact boat owners and related marine businesses. This financial strain could potentially deter tourism and investment in the region, affecting local employment and economic growth.
For boat owners and marine businesses operating in Northern Australia, it is crucial to stay informed about these developments and engage with industry associations advocating for more affordable insurance solutions. Exploring alternative insurance options and consulting with experienced marine insurance brokers can also provide strategies to mitigate the impact of rising premiums.
As the situation evolves, continued dialogue between marina operators, industry bodies, insurers, and the government will be essential in finding sustainable solutions to ensure the viability of Northern Australia's marine industry.
