Industry Analysis & Industry Trends
Rocking the boat
The Boat Insurance industry has experienced a whirlwind of trends over recent years. As unemployment rose and disposable income fell during the recession, spending on boats and related insurance declined, and many existing boat owners reduced the type of coverage to save money. Additionally, recent storms affecting coastal waters have caused insurance claims to jump, hurting industry profit. Although the weather conditions are hard to project, the coming years are expected to smooth out for insurance companies. As the economy and disposable income improve, consumers will likely loosen their purse strings and return to spending on boats and, thus, necessary insurance.... purchase to read more
Industry Report - Industry Analysis Chapter
In the five years to 2012, the Boat Insurance industry revenue is forecast to sink at an average annual rate of 0.9% to $25.9 billion. During this period, growth has been hampered by a variety of factors, including a soft pricing cycle within the boating market and weak demand for boat insurance. Disposable income is expected to grow at a five-year annualized rate of 0.1% to $32,942 per capita in 2012. Coupled with a 8.0% annualized increase in the price of gas, this made boating prohibitively expensive to many Americans.
According to the National Boat Owners Association the five most common boat insurance claims include hitting a submerged object while cruising, theft while anchored, collision with other boats while boating, storm damage while moored and theft while in storage... purchase to read more