Northern Australian Marinas Struggle with Rising Insurance Costs

The Marina Industries Association (MIA) has highlighted that some marinas are facing cyclone excesses ranging from $500,000 to $1,000,000, either imposed by insurers or as a measure to reduce high premium costs. These substantial excesses require marinas to allocate significant funds as unproductive security to cover potential cyclone events, diverting resources that could otherwise be invested in business development.

In response to this crisis, the MIA and the Australian Consumers Insurance Lobby (ACIL) are urging the government to include marine insurance in the cyclone reinsurance pool. Such inclusion would provide much-needed relief to marinas in Northern Australia, mitigating escalating insurance costs and ensuring their financial stability. Alternatively, they propose that the government consider subsidising premiums for Northern Australian marinas until the 2025 review of the Cyclone Reinsurance Pool is completed.

The consequences of this insurance crisis extend beyond marina owners, affecting boat operators, both private and commercial, who are facing increased costs. The varying insurance costs are causing social disparity between the northern and southern parts of Australia, with operators considering relocation to more affordable options in southern waters.

As the situation unfolds, the marine industry continues to advocate for immediate government action to address the escalating insurance premiums and support the sustainability of marinas in Northern Australia.