The Great Recession was expectedly rough on boat sales, which saw widely reported declines of 50% or more in revenues as the economy sank. However, that tide is now turning—and producers who understand the exposures can make hay by writing coverage on new watercraft.
Sales of recreational boats (up to 26 feet in length), which account for 95% of craft on the water, were up about 10% in 2014. Sales of yachts (over 26 feet) were reportedly flat compared to 2013, but brokers and underwriters are finding smoother waters in the large-craft sector than in recent years.
"In the mid-range—vessels from 60 to 90 feet—there is definitely an uptick in sales and an increase in vessels scheduled to come off the [assembly] line," says John Gaffney, senior vice president and yacht practice leader within Marsh Private Client Services. "With mega-yachts over 100 feet, we have seen delivery times being extended, which is normally a very good indicator that yards are busier than they had been."
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