The tough market conditions in the UK marine trade industry are affecting all sectors. The UK’s leading pleasure craft insurer Navigators & General (N&G), a member of the Zurich Group, has seen a slow down in the number of new enquiries in the mid range (£15 - £250K) yacht & motorboat market in the latter half of 2008.
This appears to mirror the trends in boat sales which are likely to be affected by the economic climate and decreasing consumer confidence, which isn’t inspiring people to rush out and buy boats. This is bound to have an impact on premiums for 2009 as the market becomes more competitive.
Despite this we have had a relatively windy summer and autumn, both here and in the Mediterranean which has meant that claims numbers have been similar to previous years. However, claims expenses have been rising due to inflationary influences such as materials, energy, transport and labour costs, so there may also be pressure on some insurers to raise premiums.
The net result of this is that N&G predicts a static market in 2009, with premiums largely remaining unaltered for yachts & motorboats across the UK. Hopefully this will ease the burden of increased fuel costs and ever rising expenses faced by boat owners.
What is concerning, is the risks faced by boat owners who let policies lapse to benefit from a perceived saving in costs if their boat is not in use. Whether afloat or ashore there is still the risk of damage or incident, through weather, theft, vandalism or plain accidents. In addition to this there are many instances where maintaining insurance is a condition of contractual agreements and not having any liability protection can leave owners very much exposed to being sued, if their boat damages other people’s property or causes injury.
In the current market conditions, N&G urges boat owners to maintain cover on their boats; if laid up ashore it may be worth advising insurers. Given the economic uncertainty it is also important to check that your end security is with a reputable insurer whom you have heard of and are comfortable with.
On a more positive note, demand for both N&G’s new Superyacht Policy and Commercial Marine Combined policy remains strong and the business is ahead of plan in these two sectors.
This is due to a combination of factors. Firstly the Superyacht market (£1m - £10m) seems to have been much less effected by the economic slowdown than the medium sized pleasurecraft market due to the seemingly relentless demand for Superyachts, with a number of yards boasting years waiting lists.
Secondly, the UK commercial marine trade market has been quite limited in its choice for combined policies for a number of years. A fresh new streamlined policy that is competitively rated is proving very popular, especially at a time when companies are looking very closely at their expenses and seeking real value for money.
So we are looking forward to a competitive 2009, with good deals available for the boat owner. We strongly urge people to resist the temptation to let cover lapse in an effort to save money and to ensure that their insurance is arranged with secure and well established Financial Services Provider.
ENDS
For further information contact:
Simon Tonks, Development Manager, Navigators & General,
t: 01273 863417 e: simon.tonks@uk.zurich.com
Joe Field, PR Consultant, Navigators & General,
t: 01273 863422 e: joe.field@navandgen.co.uk
