RISKY BUSINESS

It has been a torrid time of late for marine insurers, as boat owners will have noticed from the upward trajectory of their insurance premiums. Increases vary widely, of course, but in general there have been double-digit rises for sailing yachts. At the racing end of the spectrum and in superyachts, the hike has been much more dramatic.

Insiders point clearly to the losses that stemmed from just four weeks of extreme weather in 2017. The three hurricanes Harvey, Irma and

Maria caused an estimated $215bn of damage, $100bn of which was insured losses. Competition for new marine business, especially in the glamorous superyacht and grand prix racing sectors, meant that risk was seriously undervalued and even in a good year, margins razor thin. Underwriters were unprepared, with the industry as a whole paying out a reported £200 for every £100 of premium received.

Increases over recent years are part of a dramatic correction in the market that has seen several players head towards the exit altogether, or narrow their focus to more profitable sectors. Why does all of this