Rising Insurance Costs

The Queensland Tourism Industry Council (QTIC) has just released Australia’s first industry-led roadmap for tourism insurance reform.

More than identifying the problem, the report titled, ‘Insurance Affordability and Availability: Advocacy Report & Action Plan‘ sets out 21 practical recommendations to improve insurance affordability, accessibility and long-term sustainability, providing governments and insurers with a clear roadmap for reform.

While focussed mainly on the tourism industry, the report and recommendations apply equally to the outdoor recreation and education sectors.

The QTIC Media Release

July 20, 2026

The Queensland Tourism Industry Council (QTIC) has today released the most comprehensive review ever undertaken into insurance affordability and availability for Queensland’s visitor economy, warning that without urgent reform, soaring insurance costs will continue to threaten tourism businesses, regional communities and Queensland’s ability to maximise the opportunities presented by the Brisbane 2032 Olympic and Paralympic Games.

The report, Insurance Affordability and Availability: Advocacy Report & Action Plan, outlines 21 recommendations for the Australian and Queensland Governments, insurers and industry to address what QTIC says is no longer simply a cost-of-doing-business issue, but a structural threat to one of Queensland’s largest industries.

QTIC CEO Natassia Wheeler said insurance had become one of the biggest issues raised by tourism operators across the state.

“Insurance is the foundation that underpins every tourism business. Without it, businesses can’t operate, secure finance, host events or invest in new experiences,” Wheeler said.

“We are hearing from operators whose premiums have doubled, tripled and in some cases increased by several hundred per cent, while others are finding cover increasingly limited or simply unavailable.

“This is no longer an issue affecting a handful of businesses. It is impacting accommodation providers, tour operators, marine tourism businesses, attractions, caravan parks, events and hospitality operators across Queensland. Caravan park operators have reported premium increases of more than 100 per cent in a single year, with cyclone excesses now as high as $500,000. Marine tourism operators have seen public liability premiums rise around 32 per cent over five years” Wheeler said.

Queensland’s visitor economy supports more than 277,000 jobs and generates approximately $45.5 billion in visitor expenditure each year, yet 95 per cent of tourism businesses are small businesses with limited capacity to absorb escalating insurance costs.

Wheeler said the report makes it clear that insurance pressures are driven by a combination of national and global factors including litigation costs, reinsurance markets, regulatory settings and disaster risk, meaning no single organisation can solve the problem alone.

“One of the strongest messages from this report is that this is not simply a Queensland weather issue. Many of the drivers are national and require coordinated reform across governments, regulators and the insurance sector.

“Equally, industry has a role to play. This report outlines practical initiatives including better recognition of risk management and accreditation, specialist insurance models, improved data sharing and new approaches to risk pooling.”

The report recommends reforms including:

• Reducing or redirecting Queensland’s insurance duty into disaster mitigation initiatives.
• Expanding the Cyclone Reinsurance Pool to better support tourism businesses by increasing the property cap to $10 million and fixing the 48-hour event window that left flood damage from Tropical Cyclone Jasper uncovered
• National civil liability reform modelled on Queensland’s own Personal Injuries Proceedings Act, to speed up genuine claims and reduce litigation costs.
• Greater recognition of tourism accreditation and risk management practices in insurance pricing.
• Investigation of alternative insurance models including group purchasing arrangements, discretionary mutual funds and parametric insurance.
• Establishment of a Tourism and Events Insurance Reform Working Group to drive implementation.

Wheeler said the report provides a practical roadmap rather than simply identifying the problem.

“This isn’t about shifting blame. It’s about bringing government, insurers and industry together around practical solutions that improve affordability, strengthen resilience and ensure Queensland’s visitor economy continues to thrive.

“As Queensland prepares for Brisbane 2032, we cannot afford to lose tourism businesses because insurance has become unaffordable. The time to act is now. The Los Angeles Olympic Games are only two years away, and that’s when international attention starts turning to the next host city. Legislative change and new market models take years to embed, so the work needs to start now, not closer to 2032”.

QTIC will now present the report to both the Queensland and Australian Governments while establishing a Tourism and Events Insurance Reform Working Group to progress its recommendations with industry and insurers.