Marine Traders aren’t the only benefactors of the increase in Marine Sector insurers in recent months. Sailing clubs and other marine-based clubs and centres are also able to take advantage of a soft market that offers some excellent cover options.
Mark Elcocks Specialist Risks Executive with Marine Insurance brokers Insurance Risk & Claims Management (IRCM) welcomed the new competitive edge in the Marine Club Market saying “The dynamic created by new insurers means opportunities for both clubs and specialist brokers. Club officers will have the opportunity of reducing costs without sacrificing the quality of their protection and insurance brokers will have the opportunity to find better solutions for their clients”.
The opportunity to reduce premium spend will be particularly welcomed by those clubs whose sole source of income is derived through members’ subscriptions. With traditional markets facing significant exposures to a glut of claims arising from outboard motor theft as well as large fire and flood claims, clubs potentially faced a hike in premiums but the new entrants to the segment will be able to take a more flexible underwriting approach.
Increased competition doesn’t just mean short-term savings either. Where clubs have traditionally found themselves tied into a 3-year arrangement in order to yield a 5% annual premium discount, they now have the opportunity to access more substantial premium reductions. “A 5% annual discount in return for 3-years loyalty will yield a club paying £2,000 annually total savings of only £300 over the 3-year tie-in” said Mark but rebroking the same club’s requirements could deliver a substantial reduction. We have recently delivered savings of around 20% per annum to 2 clubs – this would amount to £1,200 over 3 years for the Club paying £2,000 before rebroking – or 4-times more than the club tied-in to a 3-year deal”.
Mark stressed the importance of clubs not sacrificing protection in order to reduce costs. “A club’s broker should be able to demonstrate any recommendation sufficiently meets the requirements of the club, its officers and its members. What needs to be understood is that each insurer will use different terminology that delivers a subtle variance in cover. For example, a specific cover extension explicitly offered by one insurer may not need to be highlighted by another insurer if the cover is provided as standard. This is where a specialist broker can really assist a club in obtaining the most appropriate insurance programme for the best available premium”.
IRCM is a specialist Marine Sector Insurance broker and provides comprehensive insurance programmes to Rowing, Sailing and Cruising Clubs as well as Watersport Centres.
To find out how IRCM can assist your club or organisation telephone Mark Elcocks on 01902 796 793 or email email@example.com