There was good news for yacht owners as the 2022 season got underway: the vertiginous rise in boat insurance premiums over recent years looked to be levelling off somewhat. With annual increases having topped 25 per cent for some yachts, there had been howls of protest from boat owners. Driven mainly by years of under-pricing risk in the large yacht sector, and the increasing damage from extreme weather events, there were signs that the market was readjusting.
“The London market at the very top end did some fairly drastic price changes – 100 per cent rises over three or four years, but that was more of a correction,” said Mike Wimbridge, MD of Pantaenius UK. “In the European market, there’s been a 20-25 per cent increase, and I see that slowing down and becoming more manageable. We’re talking about lower single digit increases now.”
At the sharp end of the online boat insurance business, where margins are lower and every penny on a quote counts, we found less optimism. Rod Daniel of Craftinsure said that premiums would still have to rise. “Higher inflation is already having an impact on claims costs and no insurer can afford
