The Marina Industries Association (MIA) says escalating insurance costs represent an increasing threat to tourism in Northern Australia and it’s gathering more data from members on the problems as the sector continues to push for inclusion in the Cyclone Reinsurance Pool. 

“It’s crucial to recognise that the insurance concerns extend beyond just premiums,” MIA CEO Suzanne Davies told insuranceNEWS.com.au. 

“Cyclone excesses ranging from $500,000 to $1,000,000 pose significant financial burdens on marinas, necessitating careful financial planning to account for potential expenses. Some marinas are taking out parametric insurance to cover the excluded cyclone events under their existing policies.” 

MIA has included questions relating to insurance in its biennial Health of the Marina Industry Survey, which went out last week, as it seeks to have more data to present on the issue. Anecdotally premium increases are higher in northern Australia compared to southern regions and the terms and conditions are certainly less favourable, it says. 

The Australian Consumers Insurance Lobby (ACIL) says the previous Federal Government had promised to extend the reinsurance pool cover to marine, but there has been no follow-up commitment. 

The Joint Select Committee on Northern Australian Inquiry into the Cyclone Reinsurance Pool recommended in a report released earlier this year that the current Government “announce a position” on its inclusion. 

“Marine tourism serves as a cornerstone of Northern Australia's economy, supporting a range of activities, such as snorkelling, scuba diving, boat tours, whale watching, and fishing charters,” ACIL Chairman Tyrone Shandiman said. “However, the relentless rise in costs threatens the tourism industry's viability.” 

The Cyclone Reinsurance Pool is due to be reviewed in 2025 but ACIL and MIA have called on the Government to include marine immediately, or alternatively subsidise premiums until the scheduled review is completed.