Marina operators in northern Australia have pleaded for government help with escalating marine insurance premiums, which in some cases have risen by more than 300% and seen policyholders slugged with a cyclone excess of half a million dollars.

The Marina Industries Association (MIA) says the Federal Government should immediately expand the cyclone reinsurance pool coverage to include marine insurance or provide some form of premium subsidy until the legislated review of the reinsurance pool in 2025.

“We specifically ask the Government to include marine insurance in the cyclone reinsurance pool immediately,” MIA President Andrew Chapman said.

“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.

“Such subsidies would offer immediate relief to marinas, enabling them to foster sustainable, resilient businesses and continue supporting thriving maritime and tourism industries.”

MIA, the peak body for the industry, says about 25% of the country’s 300 marinas are located in northern Australia and they play an important role in the critical tourism sector. They provide the essential support and infrastructure marine trades and businesses require to operate.

Marinas are finding it difficult and, in some cases, impossible to secure cyclone cover for their on-water infrastructure, the MIA says.

“Some have only been able to secure partial coverage, some struggled to find cover at all.”

The MIA says without accessible and affordable insurance options, marinas are struggling to maintain viable operations, manage costs, and reinvest in facility upgrades, posing significant consequences for marine and tourism industries, and regional economies.

“The consequences of these insurance challenges are profound. 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 MIA says.

“These surging costs are passed on to related marine and tourism operators, leading to inflationary spirals, and jeopardising their business sustainability and Australia as an affordable tourism destination.”

MIA CEO Suzanne Davies says 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.

“We have marinas that have reported well over 300% increases in the 5-7 years and they are seeing continuing year-on-year increases,” Ms Davies told insuranceNEWS.com.au.

The Australian Consumers Insurance Lobby (ACIL) backs the call for marine insurance to be included in the cyclone pool. ACIL says marine insurance was originally part of the plan when the pool was conceived by the Morrison Government.

A Parliamentary Committee inquiry into the pool released its report in March and made a number of recommendations to the Government, including “clarity on whether marine insurance will be included” in the scheme.

ACIL Chair Tyrone Shandiman says the situation has left a lot of marinas “high and dry”.

“We need action now,” he told insuranceNEWS.com.au. “We are already seeing examples of buildings that are getting 55% savings in premiums. So any suggestion that the cyclone reinsurance pool doesn’t work is not correct.”