Boat & Yacht Insurance Market Size - By Insurance, By Policy, By Sales Channel, By End Use, Analysis, Share, Growth Forecast, 2024 - 2032

Boat & Yacht Insurance Market Size

The global boat & yacht insurance market size was valued at USD 1.8 billion in 2023 and is projected to grow at a CAGR of 5.9% between 2024 and 2032. The rising interest in recreational boating and yachting activities significantly drives the demand for boat and yacht insurance. As more people engage in water sports, leisure boating, and chartering yachts for vacations, the number of boats and yachts on the water has surged. This growth creates a higher need for insurance coverage to protect against potential liabilities, damages, or losses incurred during these activities.
 

For instance, in Sept 2023, Ripe, an insurtech company, has acquired Craftinsure, a specialized boat insurer, marking Ripe’s first major acquisition since receiving investment from Aquiline Capital Partners. This move expands Ripe's boating portfolio to over 50,000 policyholders. Craftinsure's founders will remain in leadership, enhancing customer insurance options through Ripe’s technology and expertise.
 

As boat owners become more aware of the various risks associated with boating, such as accidents, theft, or damage from natural disasters, there is a growing recognition of the importance of risk management. Insurance provides a safety net against these uncertainties, encouraging boaters to seek comprehensive coverage. This heightened awareness is particularly prominent among new boat owners and those investing in larger or more expensive vessels, driving demand for insurance policies that cover a wide range of potential issues.
 

The expansion of the luxury goods market, coupled with rising disposable incomes, has led to an increase in yacht ownership, particularly among affluent individuals. This demographic shift has spurred demand for specialized yacht insurance products that cater to high-value vessels. Wealthy clients often seek comprehensive coverage options that include luxury amenities and additional protections, further fueling growth in the yacht insurance segment. Insurers are responding by developing bespoke policies that cater to the unique needs and preferences of affluent yacht owners.
 

Boat & Yacht Insurance Market Trends

The industry is experiencing a significant digital transformation, with insurers adopting advanced technologies to streamline operations and enhance customer experiences. Online platforms and mobile applications enable policyholders to manage their insurance more conveniently, from obtaining quotes to filing claims. Digital tools also facilitate quicker underwriting processes and improve communication between insurers and clients. This shift towards digitalization not only increases efficiency but also meets the growing expectations of tech-savvy consumers who prefer to conduct transactions online.
 

For instance, in May 2024, Maritime tech startup Vanguard has secured $1 million in funding to develop its automated insurance underwriting platform for maritime operations, with investors including Hafnia and Motion Ventures. The platform aims to streamline interactions between underwriters, brokers, and clients, addressing gaps in technology adoption and insurance premiums. Vanguard's approach tailors’ insurance to specific vessel risks, recently helping a client reduce war insurance premiums by over 50%.
 

Insurers are placing greater emphasis on risk management and prevention strategies to mitigate potential losses and claims. This trend involves offering educational resources and tools to boat and yacht owners to help them understand and manage the risks associated with boating. For example, insurers may provide safety training, navigation resources, and advice on maintenance practices. By promoting proactive risk management, insurers can reduce the frequency of claims and foster a safer boating environment, ultimately benefiting both the insurer and the insured.
 

Accurately assessing risk and underwriting policies in the boat and yacht insurance market can be particularly challenging due to the diverse nature of vessels and their usage. Factors such as the type of boat, its size, age, maintenance history, and the geographical area where it operates all influence risk levels. Additionally, the unpredictable nature of marine environments, including weather patterns and unforeseen incidents, makes it difficult for insurers to develop reliable models for risk assessment. These challenges can lead to inadequate coverage or inflated premiums, potentially deterring potential policyholders.
 

Boat & Yacht Insurance Market Analysis

Based on insurance, the market is segmented into boat insurance and yacht insurance. In 2023, the boat insurance segment accounted for over 63% of the boat & yacht insurance market share and is expected to exceed USD 1.7 billion by 2032. boat insurance encompasses a wider variety of boats, including smaller recreational crafts such as speedboats, fishing boats, and personal watercraft. This inclusivity allows boat insurance to cater to a larger demographic of boat owners, many of whom engage in recreational boating and require essential coverage for potential liabilities, damages, or accidents.
 

Additionally, the relatively lower costs associated with boat insurance compared to yacht insurance make it more appealing to budget-conscious consumers, contributing to its widespread adoption.
 

Based on the policy, the boat & yacht insurance market is divided into agreed value policy and actual cash value policy. The agreed value policy segment held around 59% of the market share in 2023. Under an agreed value policy, the insured and the insurer agree on a specific value for the vessel at the time the policy is issued, which is particularly advantageous for high-value boats and yachts.
 

This arrangement ensures that in the event of a total loss, the policyholder receives the agreed-upon amount, regardless of depreciation or market fluctuations. This is especially important for luxury vessels that may have significant customization or enhancements, as their true value may not be accurately reflected in standard market assessments. 
 

U.S. region accounted for a boat & yacht insurance market share of over 87% in 2023 and is expected to exceed USD 2.6 billion by 2032, with millions of registered boats and yachts, the market presents a diverse array of vessels ranging from small fishing boats to luxury yachts, necessitating a comprehensive range of insurance options.
 

The country also has a well-established insurance infrastructure and regulatory framework that supports the marine insurance sector, encouraging innovation and competition among insurers. Additionally, the affluent demographic of many boat owners in the U.S. often invests in high-value vessels, leading to an increased emphasis on specialized coverage like agreed value policies and comprehensive protection.
 

Europe boasts some of the world's most popular boating destinations, such as the Mediterranean, the Baltic Sea, and numerous inland waterways, attracting both local and international boaters. This abundance of scenic waterways and a diverse range of vessels ranging from luxury yachts to small sailing boats creates a significant demand for specialized insurance products. Additionally, European insurers have developed a robust regulatory framework that not only protects consumers but also encourages innovation and competition among insurance providers.
 

Rapid economic growth in countries such as China, India, and Australia has led to a burgeoning middle class with increasing disposable income, enabling more individuals to invest in boats and yachts for leisure activities. This surge in boat ownership is complemented by the region's stunning coastlines, numerous islands, and favorable climates, which create ideal conditions for boating and yachting.
 

Furthermore, the rising popularity of water sports and marine tourism has driven demand for insurance products tailored to a variety of vessels and activities. The region is also witnessing the development of sophisticated insurance infrastructure and regulatory frameworks, making it easier for insurers to offer competitive products that meet the unique needs of boat and yacht owners.
 

Boat & Yacht Insurance Market Share

Progressive, Chubb and Markel collectively held a substantial market share of over 26% in the boat & yacht insurance industry in 2023. Progressive is known for its competitive pricing and innovative use of technology, making it accessible to a wide range of boat owners while emphasizing ease of online purchasing and policy management. Chubb, on the other hand, appeals to the high-end market with its tailored coverage options and exceptional claims service, attracting affluent clients who own luxury vessels.
 

Markel complements this by focusing on niche markets and providing specialized policies that address unique risks associated with various types of boats and yachts. Together, these companies leverage their extensive industry experience, robust underwriting capabilities, and effective risk management practices, allowing them to cater to diverse customer needs and preferences.
 

Boat & Yacht Insurance Market Companies

Major players operating in the boat & yacht insurance industry are:

• Allstate
• AXA XL
• Chubb
• Geico Marine Insurance
• Liberty Mutual
• Markel
• Nationwide
• Progressive
• Travelers
• Zurich Insurance Group
   

Boat & Yacht Insurance Industry News

• In December 2023, AXA XL has partnered with Oversea Insurance Agency to offer specialized Marine General Liability insurance for Marine Artisans in the U.S. This online product aims to simplify access to coverage for contractors in the ship repair industry, allowing quick documentation via smartphones. Key features include comprehensive general liability coverage, medical expenses limits, and contractual liability protection, enhancing efficiency and project turnover in shipyards.
   
• In August 2023, Deckee, a leading boating safety app, has partnered with Nautilus Marine Insurance to promote safer boating in Australia. Nautilus Marine customers will be encouraged to use the free Deckee app, which provides trip logging, weather updates, and navigation aids. Both companies will also collaborate on educational content for Nautilus Marine Magazine, enhancing water safety awareness among boaters.
   

The boat & yacht insurance market research report includes in-depth coverage of the industry with estimates & forecasts in terms of revenue ($ Mn/Bn) from 2021 to 2032, for the following segments:

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Market, By Insurance

• Boat insurance
• Yacht insurance

Market, By Policy

• Agreed value policy
• Actual cash value policy

Market, By Sales Channel

• Direct sales
• Brokers
• Online platforms

Market, By Application

• Safety testing
• EMC testing
• Performance testing
• Environmental testing
• Others

Market, By End Use

• Private owners
• Commercial operators

The above information is provided for the following regions and countries:

• North America
  • U.S.
  • Canada
• Europe
  • UK
  • Germany
  • France
  • Italy
  • Spain
  • Russia
  • Nordics
• Asia Pacific
  • China
  • India
  • Japan
  • South Korea
  • ANZ
  • Southeast Asia
• Latin America
  • Brazil
  • Mexico
  • Argentina
• MEA
  • UAE
  • Saudi Arabia
  • South Africa