Re: Boat Insurance During Pandemic
In 2018 I was insured with a LLOYDS South Pacific syndicate via an agency in NOUMEA NC. Last year I was told by somebody in that NC agency that LLOYDS no longer wanted to renew/write policies. Wow – not happy and questioning further apparently there was a misunderstanding internally in the NC agency as then my own agent came back with another proposal; surprisingly also from LLOYDS but roughly USD400 higher than previous year but with a higher agreed value. I accepted immediately but when I asked what happened he explained that LLOYDS no longer wanted to write NEW CALEDONIA nationals but when they realized I was not a NC national they wrote me again. I am Dutch, the boat is UK owned but Dutch registered.
Researching this further I noticed that the NC agency had in both cases their PAPEETE office handle & issue the policy and I was actually dealing with somebody in PAPEETE.
A couple of months ago a fellow A54 owner (USA national), also sailing in the SP, was dropped by his insurance and struggling to get coverage and I referred him to my PAPEETE agent and he got written/covered by the LLOYDS syndicate. Hearing this I didn’t worry about my renewal next week UNTIL I was informed last week that LLOYDS didn’t renew policies anymore. My PAPEETE agent gave me this explanation: “Our two Lloyd's syndicates, as well as many other insurers, left the yacht market at the beginning or 2020. There are less and less insurers for this class or insurance in Tropical areas, that's for that reason that the premium level is increasing a lot” He then came last week with a proposal 3 ½ times higher than my current premium which I declined.
Last night send sent me another proposal which is acceptable to me but we are working on getting a combination of hard storage and then when I go actually back into the water activate this new policy.
Until I was informed last night of this other option I was really concerned but it looks we found an acceptable solution.
Best Regards Teun
SV AMELIT A54 #128
Currently on the hard in COOMERA (near BRISBANE) QLD AUSTRALIA
April 16, 2020 18:30:55
USA cell: +1 832 477 8842
AUSTRALIA cell: +61 5951 8909
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From: main@AmelYachtOwners.groups.io <main@AmelYachtOwners.groups.io> On Behalf Of Porter McRoberts via groups.io
Sent: Thursday, April 16, 2020 16:36
Subject: Re: [AmelYachtOwners] Boat Insurance During Pandemic
This “boat insurance companies dropping policies” movement since Maria and Irma evades my understanding. I’m wondering if someone has some insight. I understand how the real or perceived risk has increased with global warming and storm frequency increases, but why then not just increase premiums to offset risk? Why so many getting out of the business? Seems like something more, structural is afoot. Anyone with insights?
Porter McRoberts S/V IBIS.