Shrinking insurance market causes headache for offshore cruisers

Yacht owners who want to sail further afield are being advised to provide extra information, such as evidence of sailing experience, in order to improve their chances of finding a policy.

- Katy Stickland

Over the last 18 months, many cruisers have struggled to find cover for extended cruising such as high latitude or ocean crossings, which is perceived as the high risk end of the yacht insurance market. For others, premiums have become unaffordable.

A number of factors have been identified for the current situation, including unprofitable cheap insurance cover caused by increased competition and years of investment in the insurance market and Lloyd’s of London syndicates. The billions of pounds paid out after the 2017 Atlantic hurricane season, which saw 17 storms, including 10 hurricanes, and the €590 million insurance claim after a major fire in the Lürssen Shipyard in September 2018 have also contributed to investors leaving the market.

The managing director and senior underwriter at new broker and insurance provider Stoneway Marine, Keith Lovett, said with fewer brokers in the marketplace offering limited cover, boat owners were choosing to accept bigger excesses or consider buying only liability and port risk cover.