Over the past few years, the insurance industry has taken a pounding with phenomenally large losses being incurred by insurers.
Many of these losses are as a result of the more frequent extreme weather cycles we are experiencing.
Cyclone Debbie in Australia and Hurricane Irma in the Caribbean both played their parts in causing huge losses for insurers, with one insurer reporting a recent £1bn loss in their financial year.
Off the back of this, the yacht class of business has been scrutinised by Lloyd’s of London with them restricting the insurer’s capacity to write such business. Gone are the days of writing insurance for income, thus making returns from investments. There is a real swing to the fact that companies must now write insurance business to make profit.
As a result, we have seen many insurers now refusing to write yacht business altogether, with those that remain in the market having a much more limited appetite resulting in premium increases, restricted cover, windstorm exclusions and increased excesses.
Whilst price is of course a fundamental thing when it comes to insurance, please ensure that the cover you are purchasing is right for you and is being provided by a reputable company. When comparing quotes / policies, ensure they are on a comparable basis (sums insured, excesses, limit of liability, key exclusions or key benefits). Please do not be caught out by simply opting for the cheapest!
From Laura Clothier
Topsail Insurance
UK Office: + 44 (0) 1273 573 727
E laurac@topsailinsurance.com
www.topsailinsurance.com
Australia, Perth + 61 (0) 8 6102 8861
enquiries@topsailinsurance.com.au
www.topsailinsurance.com.au