Boat Insurance Industry Recovery Possible Says New Report

Press Release
Monday, December 10, 2012

Natural disasters and decreased consumer spending on boats have hurt insurance industry profits states a new market survey.

The Boat Insurance industry has struggled to stay afloat over the past five years due to low demand in the wake of the Great Recession, says IBISWorld industry analyst Eben Jose. An annualized 8.0% increase in oil prices also made boating more expensive over the period. Combined with low disposable income, new boat sales plunged more than 15.0% annually between 2008 and 2010. Likewise, existing boat owners chose to downgrade their boat insurance policies to cut costs. Consequently, industry revenue is projected to sink 0.9% annually on average to $25.9 billion over five the years to 2012.

Higher competition stemmed from online retail, facilitating the comparison of boat insurance products. It also led to increased market share for major companies like Allstate and State Farm, which were best positioned to offer discounted insurance to consumers seeking savings.

Aside from storm damage boat insurance claims, the three most common claims according to the National Boat Owners Association include hitting a submerged object while cruising, theft while anchored and collision with other boaters.

Better news for the industry is that disposable income is estimated to recover 1.3% in 2012, so people are more likely to be out on the water. Therefore, consumers will be more likely to upgrade their boat insurance. As disposable income increases, industry revenue is expected to increase. Additionally, IBISWorld expects interest rates to rise as the economy improves, which will drive investment income and industry revenue throughout the period.

For access to the IBISWorld report click here.

 

Maritime Reporter August 2014 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

Legal

Bahri Appoint Two Board Members

The National Shipping Company of Saudi Arabia (Bahri) announces it received on 21/11/1435H corresponding to 16/9/2014G a letter from Saudi Aramco Development Company (SADC) appointing Mr.

RWE Dea Awarded Two New Concessions in Egypt

In the International Bid Round 2013, RWE Dea has been awarded two new offshore concessions with operatorship by the Egyptian General Petroleum Corporation (EGPC).

Sound Oil Announce 2014 Interim Results

Sound Oil, the European / Mediterranean focused upstream oil and gas company, announced its unaudited interim results for the six months ended 30 June 2014.   Highlights   *

Finance

Aiming to Make Less Fuel Go Further: Maersk Drilling

Maersk Drilling says it is engaged in an energy efficiency project for its newbuilds together with Maersk Maritime Technology. The project involves an Energy Management System (MSPS),

Sound Oil Announce 2014 Interim Results

Sound Oil, the European / Mediterranean focused upstream oil and gas company, announced its unaudited interim results for the six months ended 30 June 2014.   Highlights   *

Tax Relief for Indian Seafarers

Indian seafarers serving on Indian flagged vessel are forced to pay income tax if their vessel touches two Indian ports during a voyage whereas Indians serving

Yachts

USCG in Search of Missing Man in Lake Michigan

The Coast Guard is searching for a man who went missing on Lake Michigan, Tuesday. Missing is 48-year-old Joseph Kiehm from Milwaukee. Kiehm was last seen aboard his 26-foot white sailboat,

Mercury Marine Launches Repower Financing

Mercury Marine launched a new repower finance program that aims to make it easier for consumers to get the engine performance they want with flexible financing for a broad range of buyers.

ZF Marine: New Transmissions, New CEO

Marine propulsion system technology providers ZF Marine says it expanded its portfolio of transmissions for the commercial craft segment when two hybrid-ready systems

Insurance

RRI Launch Marine Services J/V with a Trans-Atlantic Reach

Regional Reporting Inc. (RRI) and Global Risk Evaluations (GREvL) inform of the creation of a joint venture aimed at expanding their marine services offerings.

3rd India Ship Recycling Conference Set to be a Big Draw

Delegate registeration for the 3rd India Ship Recycling Conference is going on at a hot pace with a lot of interest having generated with the new Indian Government

Arctic Shipping Routes: P&I Insurance FAQs

The UK P&I Club has compiled an FAQ which focuses on the implications for P&I insurance of choosing to use the Northern Sea Route. The Northern Sea Route (NSR),

 
 
Maritime Careers / Shipboard Positions Maritime Contracts Maritime Security Maritime Standards Navigation Offshore Oil Pipelines Salvage Shipbuilding / Vessel Construction Winch
rss | archive | history | articles | privacy | terms and conditions | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.1313 sec (8 req/sec)