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The ups & downs in the Marine Insurance market

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  • 1 Post By killingtime
  • 1 Post By Tainui

The ups & downs in the Marine Insurance market

Old 10-18-2019, 08:00 AM
  #1  
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Default The ups & downs in the Marine Insurance market

Why you may be seeing rate increases in the Marine Insurance Marketplace.

We hear clients asking why are my rates going up….I’ve never had a claim; Or, Why is it going up 20% or 30%. Some policies are being non-renewed by the insurance company and the agency, (Gallagher Charter Lakes is a Specialty Marine Agency) is letting the insured know they are being non-renewed and are searching for alternative companies to offer coverage.

Marine insurance stated back in the 1680’s in a little coffee shop in England; Edward Lloyd’s coffee shop. From there, Lloyd’s became the world’s leading market for specialty insurance. Insuring ships and cargo originally and growing from that to insuring a broad array of risks. The Lloyd’s markets dominated the Ocean cargo risks and still currently backs many companies that write the yacht and pleasure boats.

The current US property insurance environment is experiencing tremendous challenges. On the personal boat and yacht side values are rising as are the costs to repair these vessels when they are damaged. In addition to hull values and personal effects, there are the P&I (Protection & Indemnity) liability, rising medical costs and pollution liability losses having an incredible impact in the marine insurance world. Settlements by the courts have never been higher, yet the marine insurance premiums remained low.

With all the competition the product became commoditized and rates stagnated with plenty of capacity, creating a situation where rates were not adequate for the risk. Many lines of business in Marine Insurance have been unprofitable for several years. Whether it was from small frequency losses like submerged object strikes, or larger losses seen when cargo ships lose much of their cargo, large yacht losses from catastrophic storms, or worse, when large pollution spills impact the environment or when people are injured and/or lose their life.

Changes in marine insurance premiums have been needed to cover losses, but now that is being coupled with a lack of re-insurance capacity and appetite due to the recent historic losses.

So, what can you do to help keep your premiums from spiking as much? Talk to your agent about credits/discounts the carriers may offer. A boating education course is one such discount. Keep your boat well maintained to avoid unnecessary/preventable losses. Increase your deductible in a risk sharing measure. Secure your watercraft. Put safety measures in place and prevent risk of injury to those on your boat. Always keep a watchful eye in all directions while operating your vessel. Respect the water.

Despite the premium increases currently being seen, cargo will continue to be shipped and people will want to go fishing or boating. The boating and shipping industry keeps the world afloat.

There’s an old saying I heard as a child, “and this too shall pass.” We’ve gone through soft markets in insurance and hard markets and this cycle is hardening right now. This too shall stabilize with disciplined underwriting and disciplined watercraft owners and operators.

*Gallagher Charter Lakes is a Specialty Marine Agency and wholesaler of marine insurance products, representing dozens of top rated insurance companies.

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Old 10-21-2019, 09:50 AM
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Yes- be ware of this trend! I have been a customer for many years with Charter Lakes, and as mentioned NEVER had a claim. YET, here I am receiving a letter from them stating they would not re-new my coverage-BUT they could shop it around..

So they come back with a number that was close to my previous monthly amount- JUST to find the coverages were not even close to comparable! Less boat value, less mileage allowed, not even worth talking about. So when the got a quote for an apples to apples comparison their price was DOUBLE what I paid last year!!

What a scam- have zero claims for 5 years plus, and they either drop you or charge you double!!

If you are insured by these folks get ready to bend over- or spend hours trying to find alternates!! Not happy!
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Old 10-21-2019, 10:03 AM
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^^^Not Charter Lakes fault.

They are brokers not underwriters.
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Old 10-21-2019, 11:47 AM
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Dear Killingtime
We are sorry that you saw a significant increase in your premium this year. For the last several years premiums were very low and due to the significant increases in costs, carriers have either left the marine insurance market or increased rates.

We are the broker, representing many companies, we did consult with underwriters from multiple other carriers to find a suitable replacement policy for those affected by the "Non-Renewal" that several folks experienced. Sounds like you may have reached out to several other brokers to find options and found it difficult as well.

We do understand how these increases can be frustrating to a boat owner and work diligently to find our clients quality coverage at the best possible rate.

Kind Regards
Charter Lakes
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Old 11-05-2019, 07:48 PM
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I've been waiting for my remarketing quote for 6 WEEKS now and haven't received returned phone calls yet. This has been some pathetic customer service since receiving my "non-renewal" letter. Everyone with Charter Lakes should be warned.
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Old 11-06-2019, 05:30 AM
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Because there are no real names in this forum, I will need you to
reach out to our office today. Ask for Dave (800) 879-2248
I will track your quote down.
We have had a few customers where the remarket quote went to their spam folder.
I will resend it to you, once we have your contact information.


Sincerely
Charter Lakes
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Old 11-12-2019, 05:48 AM
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Bought new boat two weeks ago. Have had Charter Lakes for years with zero claims. Got 3 quotes. Allstate, Progressive and CL. Allstate and Progressive were within $10 of each other. CL was 2.5X the other rates with a $14k storm deductible. Went with Allstate. No storm deductible, no haul-out requirement and my lift is covered as well.
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Old 11-12-2019, 06:22 AM
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Dear HaneyRM
To clarify, Charter Lakes is a marine insurance agency and quotes 4 or more insurance companies for each risk, including Progressive, when seeking to find the best policy for the insured. Many Top Tier marine insurance companies have made changes with regard to appetite and rate. Again Charter Lakes is not an insurance company, but rather an Agency representing dozens of top tier marine insurance companies.

Not all boat policies are created equal, it's a policy that is not standard across companies, like home and auto. Without knowing the specifics of who haneyrm is, the type of vessel, age of vessel, navigation requested, how the boat is stored, whether you are OK with an ACV policy, what limits Allstate offered you for liability, med pay, towing, pollution, coverage for fishing equipment, deductible and if you had other business with that company, etc...
It is difficult to compare these quotes on this forum. I'm sure you discussed and reviewed the policies with a marine insurance expert in order to make the most informed decision.
We wish you well and if things change, we are here to quote you with a top tier marine insurance company.
Best Regards
Charter Lakes
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