26 Apr 2012
Willis reassures superyacht industry with news of lower premiums
By Lulu Trask
In the first quarter of 2012 the superyacht industry has seen two disastrous events. The sinking of the Costa Concordia in January and the sinking of Proteskan Turquoise’s 60.2m superyacht Yogi in February raised concerns as to the price of insurance premiums for superyachts. However, it seems the superyacht industry has no cause for concern.
Following the release of Willis’ Marine Market Review 2012, Mark Feltham of Willis spoke exclusively to SuperyachtNews.com. “People were saying [the sinking of Costa Concordia and Yogi] would have an impact on premiums and pricing. We haven’t really seen any of that.”
In fact, Feltham revealed that superyacht premiums in 2012 were actually better for owners, as he declared that the average yacht with no claims over the past 12 months “has been paying a slightly smaller premium.”
Feltham did note that due to the fact the two sinkings took place in the first quarter of 2012, by which time companies had already set their guidelines, it may have an effect in 2013. “But, we’d be guessing,” he said. “There’s still a long way to go.”
Willis’ Marine Market Review 2012 also highlighted the superyacht industry’s anticipation as to the emergence of the Chinese, Indian and South American markets, although the review states: “There is evidence of these nations entering at the USD 5-10m mark but it remains to be seen if they develop an appetite for larger yachts.” If they were to, Feltham suggested the higher number of boats might mean a strain is put upon insurers. “But,” he said, “we’re not seeing that at the moment.”
Interestingly, though discussed at length throughout the review, piracy was not mentioned in the review’s superyacht section. With the suggestion that piracy is not a pivotal issue within the superyacht insurance arena, and the option of lower premiums despite the events of this year’s first quarter, it would appear that worries about the superyacht industry from an insurance eye can alleviate. According to Feltham, the insurance arena would need to see “at least one yacht-specific loss to have an effect.”
Willis Marine Market Review 2012
Willis Profile | Willis Website
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