We continue to favorably view the watercraft line of business. Historically, the watercraft line of business has produced a 5-year loss ratio of 34.6%. We remain very interested in writing more watercraft coverage for the clients you serve.
Did you know?
· Almost half of Michigan is comprised of water and has more shoreline than any of the other contiguous 48 States.
· With 3288 miles of Great Lakes shoreline it is easy to see why Michigan ranks 3rd in the number of registered watercraft, boats and yachts in the country with 812,066 vessels.
We are committed to providing your insured’s with quality Marine products. It is important we price this product line to provide you with a continued profitable stream of business.
To achieve this commitment, effective December 1, 2013, we will be adjusting our overall rates for Michigan Boat and Sports Vehicle by 5.6%. The following specific rate changes were made:
· Outboard Boat: -2.5% to physical damage
· Outboard Motor: -2.5% to physical damage
· Sailboat: +10% to physical damage
· Inboard Boat: +7.5% to liability
· Personal Watercraft: +10% to liability
· Jet Boat: +10% to liability
· Transporting Trailers: +12% to physical damage
In addition to the above rate changes, other changes being made include:
· The base deductible is being increased to $250.
· The $100 deductible option is being increased by 5%.
· The $100 and $250 deductibles are being eliminated for Personal Watercraft (jet skis) and Jet Boats.
· The Home Endorsement Credit is reduced to 3%.
· The liability pricing points are being modified to 26’ and above.
· Minimum deductible requirements have been added based on the age and value of the boat.
· Recreational vehicles licensed for road use and dune buggies were added as ineligible vehicle types.
We want to continue to be your market for marine business. If you have any questions regarding these upcoming adjustments, please contact your Personal Lines Field Manager, Underwriter, Eric Kinney, or me.
Thanks for your continued support.
