Lloyd’s may lose out to RSA and prices may fall, say brokers
Royal and Sun Alliance (RSA) has launched a policy for yachts valued between £205,000 and £12.5m, the FT reports.
Last month’s Merrill Lynch/Capgemini World Wealth Report forecast that demand for “passion investments” such as luxury boats would rise in 2010, after a weak 2009.
“This new yacht policy follows the creation last year of a new dedicated yacht team with 30 years of underwriting experience in the yacht market,” says Richard Turner, marine director at RSA. “We believe this is a market that will expand in the long term.”
Premiums were to rise
“Their expansion into this market comes at a point when premiums were expected to rise,” says Simon Ballard, managing director of CRS Yachts, a specialist super-yacht broker. “But I do expect RSA will be competitive and will make inroads into this market.”
Brokers welcomedthe fact that RSA is a well-known name. “At this end of the market, the client wants be satisfied as to quality of the cover,” says David Nason, senior account manager with Hillier Buchan, a marine insurer.
“They don’t want hassle. They want to know that if their craft is damaged that their claim will be safe.”
“It will cater for business that might otherwise have gone to Lloyd’s, which can be a longer and more complicated process,” says Nigel Adams, senior branch manager with Higos, the marine insurers.
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