Steady as she goes? NM Insurance lifts lid on pleasurecraft insurance
Steady as she goes? NM Insurance lifts lid on pleasurecraft insurance | Insurance Business New Zealand
Marine
Steady as she goes? NM Insurance lifts lid on pleasurecraft insurance
Despite a dip, demand is still strong
During the COVID-19 pandemic and the months that followed, New Zealanders, likely more than any other nation, took to their boats and motorcycles.
News reports quoting the New Zealand Marine Industry Association said boat sales doubled during 2020 – the height of the pandemic – and continued to grow into 2023.
“Compared to many other countries, a higher level of New Zealanders’ recreational time is spent boating – which is fantastic and obviously important for us as a portfolio to manage,” said Lyndon Turner (pictured above), CEO of NM Insurance. A focus of the underwriting agency, that also operates in Australia, is marine insurance – including for pleasurecraft.
Sydney-based Turner recently visited his firm’s Aotearoa operation for a board meeting and general strategy update with his local team. In an interview with Insurance Business, he described demand during the pandemic as “the Halcyon COVID days.”
Kiwis are nuts about boats
However, even without the pandemic, New Zealand is a country where demand for boat insurance coverage is usually strong.
“I think if you measured it on a per capita basis, registration statistics have shown that there’s a very high percentage [of boat] ownership in New Zealand versus other markets around the world,” said Turner.
Turner suggested this trend has continued into the early months of 2024. However, he said demand from the pleasurecraft market in particular, is still strong.
“In New Zealand… we’ve seen really strong pleasurecraft momentum,” he said. “For motorcycles, we find that the market has slowed a little bit when it comes to sales momentum and it’s nowhere near the peaks during COVID.”
Turner said the NM Insurance portfolio is seeing “good growth.”
“But certainly sales momentum has amended and cost-of-living pressures are obviously there, of course, because it’s a discretionary spend,” he said.
The current sales momentum, he suggested, is partly coming from wealthier boating fans.
“Yes, this discretionary spend generally falls outside of individuals with mortgage pressures and also cost-of-living issues,” said Turner.
However, locals upgrading older boats is also pushing business along.
“Of course, pleasurecraft as a marketplace and as an ownership percentage of the population is so high in New Zealand because the locals are just naturally attracted to recreational water pursuits because of the beautiful waterways over here,” he said. “It’s just part of their DNA.”
Current challenges: Capacity and return on investment
Like much of the insurance world, Turner said capacity issues are a current challenge.
“Capacity and return on investment or returns to a portfolio are always a challenge depending on the exposure when it comes to weather events, or other issues,” he said.
Educating customers about lithium batteries
The CEO said another current focus for his firm is managing emerging technologies that are impacting boating, including lithium batteries.
A new ambassador
This month, Turner’s firm appointed Australian television personality and weather presenter, Paul Burt as an ambassador for its trans-Tasman insurance brands.
Are you in the marine industry? Do you offer coverages for pleasureboats? What are your challenges? Please tell us below
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