Smooth sailing: Increases in premium prices and boat ownership will bolster revenue

Gains in both policy volumes and premium prices have spurred revenue growth for the Boat Insurance industry over the five years to 2016. Industry operators primarily underwrite boat insurance policies that provide financial protection against physical damage to the boat and bodily injury resulting from accidents. The market for boat insurers has also been impacted by distinct demographic changes over the past five years that are expected to continue going forward. Over the five years to 2021, industry revenue is forecast to rise. Continued increases in boat registrations and premium prices are expected during the period, particularly with per capita disposable income anticipated to rise...read more.

Industry Statistics & Market Size
Revenue
$7bn
Annual Growth 11-16
2.2%
Forecast Growth 16-21
Profit
Employment
10,336
Businesses
249
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Industry Threats & Opportunities

  • The market for boat insurers has been impacted by distinct demographic changes
  • With more volatility in weather, boat owners have increasingly upgraded their policies
  • Industry growth fluctuates with economic activity because boats are discretionary items
  • Industry Report - Industry Analysis Chapter

    Over the five years to 2016, Boat Insurance industry revenue is expected to increase an annualized 2.2% to $7.1 billion, including projected growth of 0.9% in 2016 alone. During this period, growth has been boosted by a variety of factors, including stronger demand for boat insurance and a recovery in the industry’s pricing cycle. Per capita disposable income is expected to grow at an annualized rate of 1.6% to $39,267 over the five years to 2016. Coupled with an expected 16.1% annualized decrease in the world price of crude oil, a significant indicator of consumer gasoline prices, boating became more affordable to many Americans during the period...purchase to read more.

    Additional Insights for the Boat Insurance Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Boat Insurance Industry are

  • Ability to effectively manage risk
  • Effective product promotion
  • Use of high volume/low margin strategy
  • IBISWorld analysts also discuss how external factors such as Per capita disposable income and Natural disaster index in the Boat Insurance industry impact industry performance..

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    What is the Boat Insurance Industry?

    This industry underwrites boat insurance policies for privately-owned watercraft. A boat owner’s insurance policy can insure against risks of owning and operating a boat, its motor and its trailer. These risks include sinking, fire, theft, and collision. Insurers for commercial boating operators are not included in this industry.

    Industry Products
  • Liability coverage
  • Comprehensive and collision coverage
  • Uninsured operator and other
  • Industry Activities
  • Boat insurance underwriting
  • Marketing boat insurance products
  • Portfolio diversification
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Per capita disposable income
  • Natural disaster index
  • Regulation
  • Yield on 10-year Treasury note
  • World price of crude oil

  • Current Performance
  • Demand wanes
  • Price adjustment
  • Industry profit and structure
  • Chart: Revenue Growth

  • Industry Outlook
  • Investment conditions improve
  • Catastrophe uncertainty
  • Table: Boat Insurance Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Boat Insurance Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Boat Dealership and Repair
  • Consumers

  • Key Selling Industries
  • Insurance Brokers & Agencies
  • Reinsurance Carriers
  • Third-Party Administrators & Insurance Claims Adjusters

  • Products & Services
  • Liability coverage
  • Comprehensive and collision coverage
  • Uninsured operator and other
  • Chart: Boat Insurance Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Consumers aged 55 and older
  • Consumers aged 35 to 54
  • Consumers aged 16 to 34
  • Chart: Major Market Segmentation for the Boat Insurance Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    ProfitLoss and loss adjustmentWagesOther expenses
  • Chart: Cost Structure Benchmarking – Sector vs Boat Insurance

  • Basis of Competition
    InternalExternal
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Boat Insurance Industry

  • Industry Globalization
    State Farm Insurance CompaniesProgressive Corp.Liberty Mutual Insurance Group
  • Table: State Farm Insurance Companies - financial performance
  • Table: Progressive Corp. - financial performance
  • Table: Liberty Mutual Insurance Group - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Boat Insurance Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Boat Insurance Industry
    Includes:
  • Industry Revenue (2007-2021)
  • Industry Gross Product (2007-2021)
  • Establishments (2007-2021)
  • Businesses (2007-2021)
  • Employment (2007-2021)
  • Wages (2007-2021)
  • Recreational Boats (2007-2021)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Capacity
  • The supply of insurance or the maximum amount of insurance a company or market can underwrite, which is determined by a firm's financial strength or surplus.
  • Deductible
  • A specified amount of money the insured party must pay before its insurance company will pay a claim.
  • Expense Ratio
  • Underwriting or operation expenses as a percentage of earned premiums, indicating the percentage of premium income that was consumed in writing insurance business.
  • Insurance Premium
  • A payment made by the insured party to the insurance company for coverage. Often called simply a premium, it is made in increments and is determined at the beginning of the policy term.
  • Liability
  • The insuring company's contractual obligation to the policyholder.
  • Underwriting
  • The process where insurers assess the risks to insure and decide how much to charge for those risks.
  • Why buy this report?

    The Boat Insurance industry market report contains data and analysis of the most influential current and future trends shaping the industry. IBISWorld’s in-depth industry market research is presented in a logical, user-friendly format, and provides growth and profit forecasts for a five-year outlook period.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Boat Insurance:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Boat Insurance market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Boat Insurance, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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