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

Legal

US Shippers, West Coast Dockworkers Union Resume Contract Talks

Negotiators for shipping lines and terminal operators at 29 U.S. West Coast ports resumed contract talks with the union for dockworkers on Thursday, as cargo backups continued at the ports,

Report: Dire Conditions in Indian Shipbreaking Yards

Report by Indian research institute reveals poor enforcement of occupational health and safety provisions   The working and living conditions at the shipbreaking yards of Alang,

Italian Shipbuilder Pleads Guilty to Environmental Crimes

An Italian shipping firm based in Genoa, Italy, pleaded guilty to violating the Act to Prevent Pollution from Ships by falsifying required ships’ documents to hide

Finance

Cecon Secures Finances to Complete Newbuild

Cecon ASA has petitioned for a debt restructuring agreement (in Norwegian: gjeldsforhandling). Certain funds managed by York Capital Management Global Advisors,

Libyan State Oil Firm NOC Will Remain Independent

Libya's Tripoli-based state firm National Oil Corp (NOC) will remain independent, it said on Thursday, in an apparent attempt to reassure foreign oil buyers it will stay out of the country's conflict.

Oil Prices Retreat from Short-covering Rebound

Global crude prices fell more than $1 a barrel on Thursday, retreating from a short-covering charged rally as traders bet the market had not shaken off a six-month long rout on oversupply concerns.

Insurance

US Obamacare Impacts the Global Marine Industry

The Affordable Care Act (ACA), otherwise known as Obamacare, the recent healthcare plan in the United States, is affecting the international superyacht industry,

Even 'Small' Vessels are Getting Bigger

The Shipowners’ Club is a mutual provider of P&I insurance that has throughout its 160 year history been dedicated to serving owners of small and specialist ships.

Danish Investors Investigating OW Bunker Collapse

A group of the largest Danish institutional investors has initiated an investigation of the collapse of ship fuel supplier OW Bunker, they said in a joint statement on Wednesday.

 
 
Maritime Careers / Shipboard Positions Maritime Contracts Maritime Standards Navigation Pipelines Port Authority Ship Electronics Ship Repair Ship Simulators Sonar
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: 0.1266 sec (8 req/sec)