Lack of marine-specific policies threat to communities – MIA

The Cyclone Reinsurance Pool is now at risk due to the current government's decision not to proceed with the inclusion.

The Marina Industries Association (MIA), representing marinas in Australia and the Asia-Pacific regions, flagged concerns about the affordability and access to insurance for marinas in Northern Australia. 

The Cyclone Reinsurance Pool initially planned to include marine insurance from July, is now at risk due to the current government's decision not to proceed with the inclusion.

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

ALSO READ: Major floods drive Australia's insured losses to $7.17b in 2022

This has significant implications for coastal communities in Northern Australia.

A number of marinas in Northern Australia face challenges in securing cyclone cover for their on-water infrastructure, and premium increases have been as high as 300% in the past few years, the MIA emphasised.

These insurance issues have a cascading effect on related marine and tourism operators, leading to higher costs and jeopardizing business sustainability and Australia's appeal as an affordable tourism destination. 

Employment opportunities are also at risk due to these insurance challenges.

Around 25% of Australia's 300 marinas are located in the northern region, with Queensland having over 65 marinas, the largest in the country.