The Marina Industries Association (MIA) has highlighted that approximately 25% of Australia's 300 marinas are located in the northern half of the country, notably in Queensland. These marinas are vital economic hubs, supporting local businesses, tourism, and employment. However, the steep rise in insurance premiums threatens their sustainability and the broader regional economy.
One marina operator reported a staggering 330% increase in property insurance premiums over seven years, while another noted their costs more than doubled in the past year alone. Compounding the issue, many marinas face exorbitant excesses for cyclone-related damages, with some encountering deductibles ranging from $500,000 to $1,000,000. Such financial burdens divert resources from business development and essential maintenance.
The MIA is advocating for the immediate inclusion of marine insurance in the federal government's cyclone reinsurance pool or, alternatively, the provision of premium subsidies until the scheduled review of the reinsurance pool in 2025. MIA President Andrew Chapman emphasized the urgency, stating, "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 escalating insurance costs not only affect marina operators but also have broader implications for boat owners and the regional economy. Higher premiums and limited coverage options may lead to increased berthing fees, potentially driving boat operators to relocate to more affordable areas, thereby impacting local tourism and associated businesses.
As the situation intensifies, the MIA and other industry stakeholders continue to engage with the federal government, seeking prompt action to address the insurance affordability crisis and ensure the sustainability of Northern Australia's marina industry.
