Boat & Yacht Insurance Market Size

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.

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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.