FOR IMMEDIATE RELEASE
26.07.2023
Northern Australia’s Maritime Industry Urges Government Action to Address Escalating Insurance Costs
Coral Sea Marina Resort, together with the wider maritime industry in Northern Australia and the Australian Consumer Insurance Lobby, is calling for urgent Government intervention to address the soaring insurance premiums for marine operators.
The former LNP Government’s commitment to include Marine Insurance in the Cyclone Reinsurance Pool, announced during its launch on 1 July 2023, was met with anticipation and hope by marine operators across northern Australia. This inclusion was seen as a beacon of relief from the mounting insurance expenses that have been plaguing the industry in recent years.
Regrettably, the decision by the current Labour Government not to include Marine Insurance in the Cyclone Reinsurance Pool has dealt a significant setback to the maritime industry. It has created an atmosphere of uncertainty for marina operators who were relying on this support to protect their businesses from ever-increasing insurance premiums.
Marina facilities drive economic growth, support employment and support a network of local small ancillary businesses that service the marina guests, tenants and operators. Some marinas in the north of the country have reported a 300% increase in the cost of their premiums, with higher excesses and premiums resulting in rising berthing rates across the state. For marine tourism operators as well, the burden of operating their on-water tourism businesses in northern Australia continues to grow as insurance premiums rise exponentially each year with overinflated excesses imposed on cyclone-related claims.
With 525 wet berths and two vibrant marina villages, Coral Sea Marina is the largest marina of its kind in central Queensland. The marina is home to 50+ marine tourism operators, 80+ commercial vessels, and 140+ bareboat charter vessels. It provides an entry statement to the bustling tourist town of Airlie Beach and provides a 5 Gold Anchor Platinum marina facility from which its marine tourism operators conduct their businesses. Without inclusion in the Cyclone Reinsurance Pool, Marine Insurance premiums will inevitably continue to rise and the economic impact on regional tourism areas such as the Whitsundays will be significant.
In the first instance, the maritime industry of Northern Australia is asking for the Federal Government to reconsider adding Marine Insurance to the Cyclone Reinsurance Pool. If the Federal Government intends to wait until 2025 for a review of the Cyclone Reinsurance Pool, Coral Sea Marina is lobbying the Government for subsidized premiums for marina owners to be considered as an interim measure.
Supporting the entire marine industry against the weight of high insurance premiums would offer immediate financial relief to marinas in northern Australia enabling them to thrive and support the numerous businesses that operate from them.