18.2% increase in Y insurance premium, normal or what

MapisM

MapisM

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Not mine, btw - it's related to a boating mate who last year subscribed a Y policy based on my suggestions.
He did that earlier than myself, because I subscribed the very same policy for my boat later, upon expiration of the previous one.
I'm saying this because he just received the renewal proposal from Y, with the premium increase mentioned in the title.
No idea about what sort of increase I will be asked for my policy in a few months, but I see no reason to expect a better treatment, in principle.

Worth mentioning also that there were zero claims during the coverage period. So far, anyway - touch wood!
Besides, the premium I am talking about is quoted in EUR, therefore the increase is even higher, when converted in GBP.
Hard to tell how much, because obviously that depends on the exact moment of the currency conversion, but the EUR amount definitely includes some other points of "advantage" for the insurers, from last year to now, courtesy of GBP devaluation.
In other words, Brit subscribers should expect a renewal premium well above 20% higher than last year, unless GBP policies would get a better treatment for some reason I can't think of.
Anyway, also regardless of currency effect, the question still stands, obviously.

So, back to the title question, do you think it's normal?
Or maybe, it's just common practice to increase the premium upon the first renewal, after making an attractive quotation to get a new client the first time? If so, should we expect the premium to stabilize for the following years?
Or am I missing anything else?
Thanks in advance!
 
jordanbasset said:
Just got my renewal the other day, has gone up 20%, third year I have been with them. Shopped around it is still less expensive than other companies so will stay with them
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Did you ask them the reason for the 20% increase, as this seems excessive, considering the past and current low inflation rates.
 
AllanG said:
Did you ask them the reason for the 20% increase, as this seems excessive, considering the past and current low inflation rates.
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Without wanting to get into Brexit they did send quite a long covering letter, one of the things mentioned was that they were now going through a Belgium under writer to ensure post Brexit there would be no problems as there was still uncertainty passporting of financial products, like insurance, would be allowed
The other thing they say is that their underwriters have suffered losses on their business with Y so premiums need to be increased. They did give some of the reasons for this, increase in cases of lightning strikes, groundings and collisions. They also pointed out that may of the claims were from more experienced customers. Also that due to competition premiums had been very low and basically they need to be raised
The premium is still lower than others I checked with, at £390 it is actually lower than my old insurance for my previous my boat from 5 years ago
 
I'm suprised that Y didn't give MapisM a reason for the increase (I had one from them for a more modest increase). However, there has been talk of the Superyacht insurance premiums being at unsustainable levels for a while so I wonder if this is partly the case for more modest boats.

Also, I suspect that a run of natural disasters and maybe some high value losses may be enough to force an increase in premiums. Something to remember when we read reports of a Pearl 60 or a Pershing sinking (a £million loss needs a 1000 boats £1k premiums to pay the claim). This isn't a massive market.
 
I queried it with them as the accompanying letter suggested to me that premiums were rising, certainly in part, due to heavy claims from Med boaters. Hmmm...anyone know any of these types?!
They replied saying that the increase in premiums was being most directed to the areas of business making the claims. Maybe.
Their insurance used to be extremely keenly priced in my case...perhaps not surprising they are now having to catch up.
Having tried a few others, it does seem that they have all jacked up their premiums .
 
gjgm said:
I queried it with them as the accompanying letter suggested to me that premiums were rising, certainly in part, due to heavy claims from Med boaters. Hmmm...anyone know any of these types?!
They replied saying that the increase in premiums was being most directed to the areas of business making the claims. Maybe.
Their insurance used to be extremely keenly priced in my case...perhaps not surprising they are now having to catch up.
Having tried a few others, it does seem that they have all jacked up their premiums .
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There's certainly been some freak weather this year in the Med, storms in Mallorca (remember those photos of Andratx), Rapallo, etc.
 
They all do it these days , to be fair when I was with Y the second renewal was the same, the owner even knew me from the forum , you can’t get a more personal level than that . I can only assume the underwriter rates have risen if you haven’t made a claim . Try GJW they always treated me well , only reason I moved was the sea cock failure uncertainty which at the time was a hot topic on here .
 
Has anybody tried Amlim direct ?
https://www.msamlin.com/en/insurance/marine-and-aviation.html

That’s if they sell to punters direct ,thus cutting out the broker ?

I have used Coleman’s in Poole , initially with Sunseeker shield then today with a Martello policy ( all Amlin underwriters) .
Policy is word for word identical to Y ,s just about 1/2 the price .
And before anybody asked yes same NCD etc .
Both the shield ( when I had a suny ) and the current Martello ,s benefits / payouts numbers seem greater as well .You know stuff like free lift out paid by them if you suspect sterngear damage form running over a pot .
No execcess for that .Idea seems to be get it checked earlier rarther than later .

Mine went up too by a similar amount btw .
Shopping around they were all higher as said Y,s 2x for same policy wording and less benefits .

I do take on board the forums love relationship with Y but so far after many attempts I,am not with them .

I think the increase is from the freak weather events and increase claims .

Having said that the shaft Itama with the same Co Colman’s was about 1/3 rd of the outdrive Sunny .
Similar values .
So for me even with a 20 odd % or what ever increase , I,am still not at the level I was 4 years ago insurance wise ,
Was about £ 12-1400 for the Porto35 last time in 2013 /14
Then in 2014 that dropped to £450 for the faster more powerful Itama .
Was about £650 ish now £800 ish ( November) . Y came in @£ 1600 maybe more ? - both Amlin wording .

I have never claimed in 14 years but as said do review the policy and take on board points raised on here .
 
Not entirely surprised, I commute with a broker in the Marine sector and he has said for a long time that low premiums are unsustainable, he warned me of impending cost increases a while ago, and was surprised that I got Y insurance at such a massive discount to GJW..... A combination of cut throat pricing, and increased claims has created the perfect storm.... no pun intended
 
It always surprises me that marine insurance is based on the hull value and seemingly little else whereas cars take into account make, model, driving experience , postcode and probably 20 more things.
 
petem said:
I'm suprised that Y didn't give MapisM a reason for the increase
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I didn't say they didn't, P.
In fact, the renewal proposal was indeed accompanied by a two pages letter from their MD.
And this letter gives several reasons for what, according to him, is the first premium increase in the last eight years, "apart from a small increase for some clients last year". Based on JB post #6, I would guess it's the same letter that he also received.

I didn't mention this in advance on purpose, though.
Having written similar letters myself when I was in the same position (albeit in a totally different business), I'm well aware that it's possible to find sensible justifications for just about anything, but at the end of the day it's always the market that drives what each single player can or can't do.

Btw, it's not like there's anything new under the sun, in this respect.
In the mid 60s, when Ferruccio Lamborghini was establishing his nowadays world famous automotive brand (but his main business still was with tractors), he received a request of price increase from Pirelli for the supply of tractor tires.
FL jumped on his Ferrari 250GT, drove to Milan, and went straight to the office of Leopoldo Pirelli.
After the latter explained all the very good reasons why they had to apply that price increase, the former replied something along the lines of "well, in this case I'll have to accept Michelin offer for the tires of my supercars".
And by the time he was driving back home, the price increase request was called off.

But I digress.
The point is that essentially, from where I'm sitting, I'm interested only up to a point in how good the reasons for any price increase are.
It's just a matter of whether it's a fact of life I must live with, or not - and based on your replies so far, it seems it is.
Which was my reason for posting this thread, in fact.
Glad to hear about any other experiences, anyway!
 
jrudge said:
It always surprises me that marine insurance is based on the hull value and seemingly little else whereas cars take into account make, model, driving experience , postcode and probably 20 more things.
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I dunno, I get a discount for having my YM, I am usually asked about experience and also rates vary depending upon mooring type/location. I guess make/model makes little difference in such a small market, unlike cars where everyone knows what the average Corsa driver is going to look like :D
 
Ours went up 5% for our Broom 42CL I am happy with the cover and at least CEO Barrie Sullivan took the trouble to write and explain the reasoning.

What is harder to swallow is the 12% IPT which in addition to 20% VAT is a material amount!
 
pks1702 said:
Ours went up 5% for our Broom 42CL I am happy with the cover and at least CEO Barrie Sullivan took the trouble to write and explain the reasoning.

What is harder to swallow is the 12% IPT which in addition to 20% VAT is a material amount!
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Agree with that, we are paying fortunes in insurance tax at work. Its what makes you look for every loophole you can find to avoid it, I do not blame the likes of google one little bit, its the government who are the crooks here.
 
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