A downward trend is observed in Greece regarding boat insurance in the last years according to HAIC that in 2010 results of the written premiums reached EUR 15 million from EUR 15.6 million in 2009. From the above premiums, EUR 4.1 million accounted for the liability insurance of boats. This turn of events is not by chance because it goes in line with sales of leisure boats in Greece that from 2009 and up until 2010 have dropped by 26%.

The scenery of boat sales up to 10 meters in Greece is quite indicative and according to officials the last five years sales have recorded a downward trend. In 2007 there were over 12.000 boats registered while in 2011 this number was at about 3.500 boats. This reduction on one hand is due to the economic recession that even if it occurred the past years it was defiantly around much earlier and on the other hand taxes worked as a stall to further development for growth of the maritime market.

According to current law, leisure boats are considered all boats with length over 7 meters, high speed boats as far as water motorcycles, water jets and hover craft.

Additionally as provided from 2743/1999 law traffic or movement of professional or recreational vessels is allowed only if these vessels are insured according with the below:

a) Civil liability for death injuries from passengers and third bump. Collision shipwreck or any other cause. The insurance amount is set at EUR 300.000 per accident.

b) Liability for property damage of passengers and third parties, collision, shipwreck or any other cause. The insurance amount is determined to EUR 150.00 per accident.

c) Prevention of marine pollution. The insured amount is set at EUR 90.000 per accident.

In Greece, according with the latest data published by HAIC(Hellenic Association of Insurance Companies) the estimated loss ratio based on the fiscal year, was 60% (65.8% in 2009) and the cost of acquisition operations to 18% (from 16.8% in 2009). The percentage of the rights contract on written premiums stood at an average of 11.6% from 11.3% in 2009.

Although the majority of insured boats are those for personal recreation, in proportion with professional vessels do not exceed them in losses and compensation. The stage is similar also when vessels are separated according to their motorization. The vast majority of insured vessels are motorized but sailing boats are those that acquire the average and maximum insurance value. The main causes for compensation are that of theft, mechanical damage and damage to the propulsion system. Highest average compensation per cause of damage show also fire/explosion causes, damages during transportation or injuries to third parties.

From the study of elements of compensation per year issuing the insurance policy, it seems that the industry enjoys a high ratio of storage and that the loss ratio is at 45.8% average over the years of 2009-2010.

Total payments of compensation during the year were EUR 11.4 million for 1.013 requirements. The stock of pending claims in 2010 decreased to EUR 8.9 million from EUR 10.8 million and involves 622 cases. During 2010, the rights to the contract reached EUR 1.7 million and supplies to EUR 2.7 million.

The recorded production of multi premium contracts reached EUR 12.6 million. For all contracts, the damages paid amounted to EUR 4.1 million while at year end compensation of EUR 3.6 million were pending.

Statistically speaking the great majority of vessels (almost 86%) is considered as "personal recreation" and in an amount less than 70% formed losses that occur from these vessels. Premium production for "professional with crew" vessels shows in proportion greater participation than their number of contracts. The same thing occurs with the paid losses of "professional with crew" boats that appear to be first in the particular category as well. Finally, the pending damages show a wide spread in relation with the distribution of policies.

The most usual causes for compensation demands are theft 21.8%, mechanical faults 14.3% and collision or impact by 11.8%. "Other causes" branch faced a large reduction 7% in 2010 from 14.3% in 2009. It appears that damages due to impact or collision, weather conditions and damages during hauling/launching maintain e relatively steady ratio. On the contrary, drop has been observed on the causes of stranding and those of fire/explosion.

The compensation for damage from mechanical faults reached 20.8%, collision/impact 14.9% and bad weather conditions 13.1% exhibit the highest rates. Though, fire/explosion and "other causes" showed significant drop.

Source: www.insuranceworld.gr