The Australian Marine Insurance sector still relies on fragmented state registries and siloed Insurer records. A national hull claims register could transform underwriting, fraud detection, and buyer confidence – but lessons from New Zealand show the benefits come with real challenges.
Australia’s boating community is one of the largest per capita in the world. There are 905,000 registered pleasure craft vessels in Australia, (including over 95,000 PWCs), excluding Northern Territory where there is no mandatory vessel registration required.
Boating Industry Association (BIA) Boating Data for 2023 showed distribution of registrations as follows:
Queensland: 276,000
NSW: 243,000
Victoria: 195,000
WA: 101,000
South Australia: 59,000
Tasmania: 31,000
Although there are hundreds of thousands of pleasure craft, and a diverse Commercial Pleasure Craft Fleet, operating across coastal and inland waters, when it comes to Insurance claims and vessel histories, the system is fragmented. Ownership, licensing and registration are handled by each state separately, while claims data sits within individual Insurers’ systems, often inaccessible to other players in the sector.
This raises the question: is it time for a national register of Marine Pleasure Craft and Commercial Hull claims? And if so, what lessons can be drawn from New Zealand’s experience?
The New Zealand Model: A Useful Benchmark
New Zealand has operated an Insurance Claims Register (ICR) since 1998. Managed by the Insurance Council of New Zealand, it provides a centralised record of personal lines insurance claims, including cars, homes, travel – and pleasure boats. See
https://www.icnz.org.nz/industry/claims-register/
Insurers contribute claims data daily, and when new policies are written or claims lodged, they can query the register to verify disclosure. The ICR has logged more than eight million claims and covers about 95% of New Zealand’s personal insurance market.
The benefits are clear:
- Fraud reduction – duplicate or concealed claims are harder to lodge.
- Better underwriting – insurers can price risk more accurately.
- Market transparency – consistent records improve consumer protection.
But there are also challenges. The ICR excludes Commercial Insurance, leaving a gap in Marine Hull cover.
Why Australia Should Consider a Register
A centralised claims register for marine vessels could deliver a range of benefits to industry and regulators:
- Fraud prevention: Duplicate hull claims, which are difficult to detect across insurers today, could be identified instantly.
- Improved underwriting: A verified claims history would help insurers price risk with greater accuracy.
- Consumer confidence: Buyers could access verified vessel histories, much like vehicle checks, helping avoid damaged or encumbered craft.
- Regulatory efficiency: A uniform record across states and territories would streamline compliance, enforcement, and safety monitoring.
The commercial sector stands to gain significantly. Unlike New Zealand’s register, an Australian model could capture both Pleasure Craft and Commercial Hulls, providing a more complete view of the market.
The Hurdles Ahead
Despite the advantages, a register would not be without challenges.
- Governance: States and territories already run vessel registries, so coordination would be complex.
- Privacy: Strong safeguards and dispute processes would be essential to prevent unfair or disproportionate impacts.
- Cost: Building and maintaining the IT infrastructure would require upfront investment and ongoing funding.
- Industry resistance: Some insurers may be reluctant to share claims data they view as commercially sensitive.
Funding the Register
New Zealand’s ICR is funded by insurer participation. For Australia, a hybrid model could be more sustainable:
- Seed funding from the Commonwealth to build the platform.
- Annual vessel registration fees, scaled to vessel type and size.
- Industry levies on insurers and financiers, who benefit from reduced fraud and better pricing data.
- Pay-per-access fees for brokers, surveyors, and buyers seeking detailed claim or lien records.
This spreads the cost fairly across all who benefit from the register.
Lessons from Across the Tasman
The New Zealand ICR shows the value of centralised claims data – but also highlights the pitfalls. For Australia, success would depend on designing a register that is:
- Inclusive – covering both pleasure and commercial vessels.
- Transparent – with clear consumer rights to access and correct records.
- Balanced – reducing fraud and inefficiency without creating unfair market exclusions.
The Way Forward
The boating industry – Insurers, Brokers, Surveyors, Regulators, and vessel owners – has a lot to gain from a properly designed national register. But it will require careful consultation and collaboration across jurisdictions to make it work.
If done right, a Marine Hull claims register could bring reduction in fraudulent claims, assist Underwriters in refining risks, and possible reduce premiums.
The challenge now is to decide whether the industry is ready to move in that direction – and start a conversation on how to build a model (and that could include AI) that delivers benefits to the industry, and ultimately boat owners.
Neale Cawse has been involved in the Marine Industry for over 30 years, including the last 21 years as a Marine Surveyor/Assessor/Loss Adjuster for the Insurance industry, and is a member of the International Institute of Marine Surveyors since 2013.
He is currently working for McLarens Australia where he has been for the last 10 years.