The US yacht insurance market is experiencing a tsunami of change. The Lloyd’s market recently announced a significant departure from the sector after posting unsustainable loss ratios and struggling to stay afloat for several years. Other players in the yacht insurance market have been underpricing business for some time and are now attempting to steady their sinking ships by enforcing rate increases - but for some, it’s too little too late.
Upheaval in any market’s equilibrium creates headaches for some and opportunities for others. For example, Midlands Management Corporation intends to turn the Lloyd’s market pain into its own gain. The firm’s executive vice president, Colin Caldwell, explained: “In the past 60-90 days, the Lloyd’s market has drastically reduced its risk appetite in the US yacht market, with a number of syndicates pulling out completely. That departure has created a huge opportunity for Midlands, especially in places like Florida and states on the Gulf Coast.”
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