Northern Australian Marinas Struggle with Rising Insurance Costs

The Marina Industries Association (MIA) has highlighted the dire circumstances faced by its members. 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."

These escalating insurance costs are not only affecting marina operators but also have broader implications for related marine and tourism businesses. The increased financial burden is leading to higher costs for services, potentially jeopardizing the sustainability of these businesses and impacting employment opportunities in regional coastal communities.

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. This situation is further compounded by the lack of adequate cover for cyclone-related damages, with some marinas being partially insured.

The MIA's call for immediate action underscores the urgency of the situation. The association is advocating for the inclusion of marine insurance in the cyclone reinsurance pool or, at the very least, for the government to provide subsidies to alleviate the financial burden on marina operators until a comprehensive review is completed.

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. 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.