Boats and Yachts Insurance Market Report 2025

The boats and yachts insurance market size has grown strongly in recent years. It will grow from $2.84 billion in 2024 to $3.02 billion in 2025 at a compound annual growth rate (CAGR) of 6.5%. The growth during the historic period can be attributed to the rising demand for marine tourism, an increase in high-net-worth individuals, expanding recreational boating activities, growing global yacht ownership, and higher spending on coastal leisure.

The boats and yachts insurance market size is expected to see strong growth in the next few years. It will grow to $3.84 billion in 2029 at a compound annual growth rate (CAGR) of 6.1%. In the forecast period, growth is expected to be driven by the increasing need for asset protection, expansion of maritime trade routes, a rise in the frequency of sea accidents, growing awareness of marine insurance, and greater customization of coverage. Key trends in this period include advancements in telematics-based tracking, integration of artificial intelligence, technology-driven claims processing, developments in cyber risk coverage, and improvements in satellite monitoring.

The rising popularity of marine tourism is expected to drive growth in the boat and yacht insurance market. Marine tourism encompasses travel and recreational activities around oceans, seas, and coastal areas, including boating, cruising, diving, and coastal sightseeing. This sector is expanding due to increasing consumer interest in experiential and adventure travel, particularly in coastal and ocean destinations. Boat and yacht insurance supports marine tourism by providing financial protection against accidents, theft, and natural disasters. It boosts traveler confidence by ensuring safer, more secure journeys, thereby encouraging recreational boating activities. For example, according to the U.S. Bureau of Economic Analysis (BEA), the tourism, recreation, coastal, and offshore segment in the U.S. reached $219.7 billion in 2022, representing an 8.1% increase from 2021. Thus, the growth in marine tourism is fueling the expansion of the boat and yacht insurance market.

Leading companies in the boat and yacht insurance market are adopting advanced technologies such as telematics-based insurance to enhance risk assessment, customize premiums, and improve safety. Telematics-based insurance uses real-time data from GPS and onboard sensors to monitor vessel usage, behavior, and risks, enabling personalized coverage and pricing. For instance, in October 2024, CompareYachtInsurance.com, a UK-based online yacht insurance aggregator, introduced Yachtech Insurance, which employs telematics-based coverage by utilizing real-time vessel data. This system analyzes navigation patterns, weather conditions, and maintenance needs through sensors and GPS tracking, allowing dynamic premium adjustments and proactive risk management. It also offers real-time alerts to boat owners to prevent accidents and reduce claims. Yachtech Insurance aims to provide more accurate pricing, lower costs for responsible users, and minimize manual underwriting efforts.

In September 2023, Ripe Insurance Services Limited, a UK-based insurtech firm, acquired Craftinsure Limited for an undisclosed amount. This acquisition is intended to strengthen Ripe’s position in the specialist leisure insurance market and accelerate growth by leveraging Craftinsure’s expertise and customer base in boat insurance. Craftinsure Limited is a UK-based marine insurance underwriting agency that offers direct-to-customer online boat and yacht insurance without intermediaries.

Major players in the boats and yachts insurance market are Allianz SE, State Farm Mutual Automobile Insurance Company, Allstate Insurance Company, Chubb Limited, The Travelers Companies Inc., QBE Insurance Group Limited, Markel Corporation, Helvetia Holding AG, Great American Insurance Company, The Hanover Insurance Group Inc., American Modern Insurance Group Inc., RAA Reinsurance Association of America, Towergate Underwriting Group Limited, Pantaenius GmbH, Pacific Marine Group Pty Ltd, United Marine Underwriters Inc., Norwegian Hull Club, British Marine, OMAC Marine Services Ltd, and Yachtinsure Limited.

North America was the largest region in the boats and yachts insurance market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in boats and yachts insurance report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa. The countries covered in the boats and yachts insurance market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

Note that the outlook for this market is being affected by rapid changes in trade relations and tariffs globally. The report will be updated prior to delivery to reflect the latest status, including revised forecasts and quantified impact analysis. The report’s recommendations and conclusions sections will be updated to give strategies for entities dealing with the fast-moving international environment.

The rapid escalation of U.S. tariffs and the resulting trade tensions in spring 2025 are significantly impacting the financial sector, particularly in investment strategies and risk management. Heightened tariffs have fueled market volatility, prompting cautious behavior among institutional investors and increasing demand for hedging instruments. Banks and asset managers are facing higher costs associated with cross-border transactions, as tariffs disrupt global supply chains and dampen corporate earnings, key drivers of equity market performance. Insurance companies, meanwhile, are grappling with increased claims risks tied to supply chain disruptions and trade-related business losses. Additionally, reduced consumer spending and weakened export demand are constraining credit growth and investment appetite. The sector must now prioritize diversification, digital transformation, and robust scenario planning to navigate the heightened economic uncertainty and protect profitability.

Boat and yacht insurance is a specialized form of coverage designed to protect owners of boats, yachts, and other personal watercraft from financial losses resulting from accidents, theft, natural disasters, or liability claims. Its main purpose is to offer compensation for damage to the vessel, onboard equipment, and injuries or damages caused to others during its use.

The primary types of coverage under boat and yacht insurance include liability coverage, physical damage coverage, medical payments coverage, uninsured and underinsured boater coverage, emergency assistance coverage, and options based on actual cash value versus agreed value. Liability coverage shields the owner from legal responsibility for bodily injury or property damage caused to others while operating the vessel. This insurance covers various boat types such as sailboats, motorboats, yachts, fishing boats, and personal watercraft. It serves a wide range of policyholders including individual owners, business entities, corporate fleet owners, non-profit organizations, first-time buyers, and luxury yacht owners. Distribution occurs through multiple channels such as direct insurers, insurance brokers, online platforms, independent agents, specialized agencies, and affiliated partnerships, with coverage applicable across oceans, lakes, and rivers.

The boats and yachts insurance market research report is one of a series of new reports that provides boats and yachts insurance market statistics, including the boats and yachts insurance industry global market size, regional shares, competitors with the boats and yachts insurance market share, detailed boats and yachts insurance market segments, market trends, and opportunities, and any further data you may need to thrive in the boats and yachts insurance industry. This boats and yachts insurance market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenarios of the industry.

The boats and yachts insurance market includes revenues earned by entities through hull and machinery coverage, theft and vandalism protection, personal property coverage, towing and emergency assistance, and uninsured boater coverage. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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