Yacht Insurance Insights - Looking Into 2025 With Marsh McLennan

2025 Yacht Risk & Resiliency Report: Navigating the Changing Waters of
Yacht Insurance

Yacht ownership and the accompanying insurance landscape have faced unprecedented shifts in recent years. To guide yacht owners through this evolving environment, Marsh McLennan Agency Private Client Services (MMA PCS) has released its “2025 Yacht Risk & Resiliency Report.” This comprehensive resource delves into the factors impacting yacht insurance today and offers insights for mitigating risks. Here’s a closer look at the report’s findings and how they impact yacht owners worldwide.

The Shifting Landscape of
Yacht Insurance

Over the past five years, the yacht insurance market has encountered significant disruptions. Natural catastrophes and rising reinsurance costs have tightened insurers’ guidelines and underwriting standards, impacting premium rates for yacht owners globally. MMA PCS’s report addresses these developments, highlighting that protecting luxury yachts today requires a more strategic approach than ever before.

Key Drivers of Rising Insurance Premiums

According to the report, several factors influence yacht insurance pricing, including:

Hull Age: Older yachts, especially those over 25 years, are typically subject to higher insurance rates.
Mooring Location: Yachts docked in regions like Florida’s Gulf Coast face increased risk from hurricanes and therefore see higher premiums.
Vessel Speed and Engine Count: Faster yachts or those with more engines are often considered higher risk by insurers.
Loss History: Past claims significantly influence an owner’s premium costs.

Emerging Risks for Yacht Owners

The report emphasizes the importance of staying prepared for various risks, from severe weather events to on-board fires and theft. Specific attention is given to the dangers posed by hurricanes and other severe storms, which can damage yachts, delay maintenance, and result in costly repairs. Cybersecurity, a growing concern among yacht owners with advanced tech on board, is another key topic covered in the report.

Superyachts: A Unique Risk Category

Superyachts, defined as vessels over 80 feet, face unique risk factors. They often carry specialized crew, extensive onboard equipment, and may operate in various international waters—each adding complexity to their insurance needs. Crew management, third-party liabilities, and the logistical challenges of maintenance and repairs are all aspects that superyacht owners need to consider carefully.

Tips for Mitigating Yacht Risks

To navigate these complexities, MMA PCS advises yacht owners on several proactive measures:

Develop Comprehensive Storm Plans: Relocating the yacht away from predicted storm paths or hauling it out of water can significantly reduce damage.
Regular Surveys and Credentialing: Conducting yacht surveys every five to seven years and maintaining proper seamanship credentials can enhance insurability.
Enhanced Security and Safety Equipment: Investing in security systems and regularly updating safety equipment helps protect against theft and accidents.
Crew Training: Regular training for captains and crew can minimize the likelihood of on-board accidents and liability issues.

The Value of Expert Guidance

Yachting remains an enjoyable, albeit risk-laden, pastime. The “2025 Yacht Risk & Resiliency Report” serves as an essential tool for yacht owners to navigate the complex insurance landscape. By understanding current risk trends and insurance considerations, owners can better protect their vessels and enjoy peace of mind on the open water.

For yacht owners looking to stay informed on best practices, Marsh McLennan Agency Private Client Services’ Yacht Specialty Group is here to help guide you through every aspect of yacht insurance, ensuring your vessel is protected wherever your journeys take you. Click below to learn more about Marsh McLennan Agency Private Client Services.