Insurance premium increase - what is acceptable?

[benzy]

Just got insurance renewal for this year and my premium has risen by 20%!

One factor is that we are moving the boat from the med to Australia, and apparently Australia warrants a higher premium.

Question 1: is this normal?

The other reason they gave was that “insurers across the board have had to increase their basic ratings following recent cyclonic events”.

Question 2: How do I know that this second statement has any bearing on reality? Is there somewhere I can see the general trend in insurance costs?

FYI they are underwritten by Lloyds

Cheers

[donradcliffe]

If you want insurance for Australia, you need to get quotes from Australian insurers, the company that insured you in the Med may not be comfortable with Australia and that comfort factor means a higher premium.

If you want to insure the boat while sailing it from the Med to Australia, be prepared to pay more, because your insurer may have to deal with claims in a dozen countries along the way as well as blue water claims.

Even though Australia has more lawyers, I got some of my cheapest insurance coverage there.

[benzy]

Thanks for the reply. I obviously missed two important points! My bad.

The boat is already insured in Australia by an Australian insurer (even though we are currently in the Med)

To your second point, we are shipping the boat back, not sailing it. And shipping company has their own insurance.

So I don’t see those circumstances accounting for any price change.

[Fore and Aft]

What part of Australia? Marina berth or mooring all these have a big factor in your premiums.
Cheers

[benzy]

It will be on a mooring. Although they didn’t ask that/same answer as last years policy.

[benzy]

Oh and in Sydney (they also didn’t ask that)

[denverd0n]

Originally Posted by benzy

How do I know that this second statement has any bearing on reality? Is there somewhere I can see the general trend in insurance costs?

Shop around. Call other insurers. If they are all quoting similar prices... Well, there's your answer.

[kclancy]

My policy with USBoats increased 30%. I have just a small trailer sailor, a Catalina 22. I cancelled.

[Shrew]

Originally Posted by benzy

Question 2: How do I know that this second statement has any bearing on reality? Is there somewhere I can see the general trend in insurance costs?

The news? A lot of money was paid out in the Caribbean, Texas and Florida over the last 8 months. Just because there were no significant storms in the Med. during that time period doesn't mean the underwriters didn't pay out hundreds of millions, if not more.

[Brewgyver]

And I imagine there'll be a fair amount paid out in the UK in the near future, due to Emma.

[benzy]

Fair enough. So anecdotally the increase seems warranted. But officially, no one knows of any kind of index or annual report or something that is accessible?

I’m just not comfortable with the lack of transparency.

[Gnome]

Originally Posted by benzy

Fair enough. So anecdotally the increase seems warranted. But officially, no one knows of any kind of index or annual report or something that is accessible?

I’m just not comfortable with the lack of transparency.

In Sydney a lot of company will not now insure boats on swing moorings.

[sailorman7225]

My boat is primarily In Florida/Bahamas and Novamar jumped about 20% also. The explanation given was as yours. After checking other options decided to stick withNovamar. Beware some policies amount to little more than liability coverage.

[benzy]

Gnome, do you know why they won’t insure on a swing mooring? By not doing so they are cutting themselves out of a huge percentage of the market!

[billgewater]

In Australia, and probably elsewhere, marinas insist on protective insurance. The management of this overall coverage is usually based on each marina user having a policy that meets the requirements of the marina. The marina usually carries some third party insurance (usually personal) that protects it against claims. Some marinas insist on fully comprehensive insurance which affords the marina further protection.
The problem here is that besides the conditions being arbitrary, each client vessel has to deal ultimately through a broker and that broker will be getting their individual "hit".
Each individual boat owner is an individual entity that has little power when negotiating premiums, conditions and exclusions.
An alternative model could be along the lines that the marina or even a group of marinas, use their collective purchasing power to provide cheaper and better directed insurance. I think that if a marina (with a few hundred clients) could lead to some really genuine market competitive options.
Possibly along the lines of the insurance company providing all third part cover liability only. The cost could be included in the rental lease/pen ownership fees.
Maybe the policy could be effective only while in the marina boundaries.
This would allow people to consider their own particular needs. Some folks just simply don't want insurance beyond compulsory needs. No body should be forced into policies that are irrelevant to their needs. The insurance company is very keen to sell you something that you may never have to use. Great business deal - for them.
I know this sounds complex but lets be very clear about all this. Insurance companies are exceptionally greedy and produce tomes of evasive, protective (for them) fine print. What legal requirements are in force that oblige insurance companies to ensure that actually have accessible resource funds to meet demographically/statistical justified payouts? When the global financial crisis was partly triggered by an insurance company not being responsible and leaving clients in the poo, you can only be suspicious. Odour of dead rats.
A prime example is that in Australia, car registration (an annual event, state based) must include third party fault free personal insurance so that should a vehicle cause personal injury... e.g putting a child in a wheel chair for life, then the costs are covered (varies from state to state in some details). The annual premium for this cover (up to $30 000 000 AUD.) is only a few hundred dollars p.a. because state governments make it compulsory and usually provide access to a state managed default policy.
Competition for this market is intense and consequently the premiums are low. As soon as you consider other forms of insurance, the greed factor leaps out of the premium listed options like a birthday cake stripper.

The general rule with insurance is that the more you have the less you really benefit. Putting the premiums into the bank or better maintenance becomes more attractive.
In the meantime, shop around. But they can see you coming.