What's happening in pleasurecraft insurance?

What's happening in pleasurecraft insurance? | Insurance Business New Zealand

What's happening in pleasurecraft insurance?

NM Insurance is witnessing an increase in Kiwis getting themselves into boating, and here chief executive Lyndon Turner (pictured) takes a deep dive into the pleasurecraft insurance space.

“Generally, across the entire market there has been a review of risk appetite and pricing for risk exposure,” Turner told Insurance Business. “Capacity has varied, and many companies will look at the region but need to consider the logistics of Australia and New Zealand.

“Locational consideration in event of major losses is critical; large land and water masses in the regions need consideration, as well as the post-COVID freedoms pleasurecraft owners are back enjoying.”

The CEO added: “We are navigating some change to both [the Australian and New Zealand] markets, based off some common guidelines, as boat owners change habits, and we ensure we reach locally but with scale in support and infrastructure.”

According to the NZ Marine Industry Association, 40% of the country’s population participate in boating each year – making boating the biggest recreational activity in New Zealand.

Lianne Waru, New Zealand manager at NM Insurance, also previously pointed to the high sales level of private vessels.

“From an underwriting perspective, we have had to undertake more diligence on reviewing the risks we are writing,” she said. “With the higher amount of surplus funds many people have due to the large reduction in travel, over the past few years we are seeing a large increase in people who are new to boating stepping into high-end vessels.

“We maintain a strong discipline on the size and value of the vessel they are purchasing, versus how much training or previous knowledge they have of boating.”

Read more: NM Insurance’s NZ manager shines spotlight on marine market trends

In addition, Turner cited the challenges and opportunities in the broader Trans-Tasman market.

“Challenges continue to be emerging trends and movement in weather events – pleasurecraft does have aggregate consolidation exposure but also spike loss exposure,” stated the NM Insurance boss.

“The opportunity continues in portfolio growth for NM, through changes to market participants’ appetites, growth in boating as a recreational pastime for many, while maintaining support from our partners and customers, continuing our philosophy of premium coverage and support for boat owners with competitive premium options.”

An insurance agency operating across New Zealand and Australia, NM Insurance is the name behind Nautilus Marine Insurance, National Motorcycle Insurance, Proteus Marine Insurance, and Australian Caravan Insurance.

Turner told Insurance Business: “I sense a feeling of the market settling a little; some uncertainty over the last 24 months has been ironed out. Insurers will continue to focus on where there are good returns and where their expertise lies.

“Capacity to the market will be based on discipline to returns and, of course, continued regulatory change and implementation will mean back-end stability and structure will allow required changes to the continued benefit of our partners and customers.”