Pantaenius Insurance – How good does it get?

by John Curnow on 29 May 2015 Insurance may not be the buzzword. There is not unobtanium for keels, spinach enhanced sails or hulls of cut diamond and vibranium fuel cells powering arc reactors to rave on about. No. It is numbers, facts, risk and documentation. Boring? No. Quite the contrary if you happen to have put your boat up on a reef or Hughie blows it off its mooring, smashes her through everything in sight and then she holes herself on the beach.

Now it’s not even been three years yet, but Pantaenius Australia has proven that if you build a better mousetrap, then they will come. Firstly it was cruising yachts, all-out racers followed and then more recently, and in ever-increasing numbers at that, it has been a road well hoed by catamarans and large powerboats.

Why, is relatively simple to appreciate as well. Firstly the Pantaenius product, which in Australia is underwritten by Lloyds, has as its very DNA a marine focus. It is not hauled together from many other types of policy. Secondly, it is an all-risk offering. So it starts by saying you’re covered for everything and then lists, on less than one page mind you, the things that are not part of the policy you’re buying.

Ultimately, this all means the documentation is pretty simple and easy enough to read and comprehend. Add in that the value insured, as appears on the front cover, is agreed to by all parties and the one you’ll get paid out in the event of total loss, and you start to see that the astute skipper is well and truly on this here bandwagon.

Weather it is or whether it is not…

To appreciate where the market is at, it is time to sit down with Pantaenius Australia’s MD, Jamie MacPhail. “This is Australia, and you have to expect interesting weather. Recently, it has not exactly been insurance company weather over on the East coast. You would not have wanted to own or be involved with an insurance company pretty much anytime in the last month or so in Sydney. You take the good with the bad, but we certainly haven’t faced a disaster.”

“I think this is a direct result of the due diligence we do. For instance, we know where the boats are, what condition they’re in and where applicable, the state of moorings they hang off. By having the surveys of these things we can make better assessments and I know we are further ahead than our competitors when it comes to this. It is also way better for the insured, because who wants to have their craft washed up on the beach, and it also keeps everything at arms length.”

Predominantly, that path to Pantaenius’ door is filled with owners coming directly, after doing their research or hearing about the speedy claims of a fellow club member and the like. MacPhail explained, “General insurance brokers really don’t understand one end of a boat from another, so we find ourselves educating the broker as well as the client on policy terms and conditions.”

A consistent flow of enquiry seems to be the key and MacPhail quickly points to the web programme as a key source of this growth, alongside client referrals. Additionally, in this sort of business there is a compounding effect based on the policies you wrote last year and so the workload increases too.

“Growth is coming from across the board. We are very strong in production yachts, particularly the newer boats, and there are a lot of the more traditional cruising people enquiring too. It is also interesting to see the number of high-end powerboats flowing in, as well. However, if you ask me what is the growth area in the market, then you would have to say it is cats. They are a significantly higher portion than what you would expect and the catamaran market has been one of the areas that continues to grow better than most.”

Regionally, Australia and New Zealand are a solid base, but as Asia itself grows, so too does the need for Pantaenius’ offering, so there is strong growth in enquiry from there, in addition to a significant expat element.

Comes around, goes around.

Now it’s not just the business itself that is growing, but so too is the team to handle it all. Whether it is in sales, accounts or claims, there is someone new joining the Pantaenius team on a regular basis.

Sponsorship is another item that grows in accordance with Pantaenius’ own success and it also marks the best way to put back into the community.

In yachting, there is the overall sponsorship of the Sail Port Stephens regatta and there is even a knock-on effect with powerboats from that. There is the ongoing effort with the Aimex Superyacht Conference and on a more localised level, there has been a resurgence of the power yacht time trial at the Royal Freshwater Bay Yacht Club (RFBYC). Naturally, this is to the great joy of the club and the participants alike.

It is time to recognise just how important the Pantaenius’ actual product offering is as the engine for all this growth. For at least 35 years, agreed fixed value has been the cornerstone of the policy.

The parties agree on a price that Pantaenius will pay out on a total loss. Importantly, they don’t reserve the right to replace the boat. There is no proviso, and no ‘getting out of gaol’ clause. Whatever the number on the document is, that will be the number on the cheque and they are still the only still the only player in the market that does exactly that.

Now think new for old, and then stop for one second, because this is important. You can opt for new for old without deduction at all, but even if you don’t, Pantaenius’ maximum depreciation is 30%. By comparison, after seven or eight years, other insurers will have depreciated the asset to zero.

Look at this way. Say your boat got hit by lightning and the electronics got fried. No matter their age, Pantaenius are still going to pay at least 70 cents in the dollar for the replacement of the electronics themselves. Crucially, they will pay 100 cents in the dollar for the labour to replace and repair it.

There are other unique Pantaenius policy features, too. “There is a whole range of things where we don’t charge a deductible. Additionally, and provided your vessel is less than six years old, we have a damage clause for normal wear and tear.”

“Also, we are still insuring people on moorings, provided we receive a report that the mooring contractor has actually serviced the mooring in the last 12 months and has also taken some responsibility for ensuring that the mooring, the plot, the chain and the mooring equipment is fit for purpose. i.e. it is suitable for the size of boat that is hanging off it.”

“Once boat owners talk to us, understand our product and how unique an offering it is, our conversion rate is extremely high. I think that in itself tells the story about the quality of the product that we offer in the market. There is nothing available in the market remotely comparable with what we offer at anything like our price point”, said MacPhail.

It’s the start of a good relationship

Indeed, explanation, detail and documentation make it easier for all and that in turn makes it safer. Boat, rig and mooring surveys allow all to appreciate what is being covered. This all stems from knowledge and in Pantaenius, you do have a team that know boats. They have been around them for a while, you see.

MacPhail detailed this saying, “I think it is fair to say that there are no longer large groups of people working for other insurance companies that know one end of the boat from another. By and large, I am aware that in most of our competitors you cannot talk to sensibly about your boat, where you may want to cruise, what the likely perils are, or what sort of event of maintenance you need to undertake to ensure that your boat is safe and seaworthy. I think we are pretty unique in that space.”

“Pretty much anybody who answers the phone in this office can talk sensibly to a client about insuring their boat in the Caribbean, Mediterranean, Asia or in the Pacific. Perhaps you want to do a trip on the costal waterway from Vancouver to Alaska. Show me another insurance office where they have got a group of people who can talk sensibly about that sort of risk and advise their clients on the best way to proceed. I don’t think they exist and I would say you’d be lucky if there are one or two brokers in Australia that have got experience in that space as well!”

With insurance come claims. Apart from the financial settlement, these actually serve as some of your best marketing activities.

Do well and quayside you will be recommended. Conversely, a poor effort will have them waxing on lyrically at the bar.

Elapsed time from event to closure is paramount, and with Pantaenius, the people who sold the policy to you, also sort out the claim on behalf of the underwriters.

MacPhail commented, “I think we have developed a reputation for responding quickly and being proactive. If there is any doubt whatsoever, we always involve an independent third party and take advice from them. Our record so far has been good. I don’t believe we have got anybody who is unhappy with the way we have treated them.”

Think local – go global

Pantaenius is one of continental Europe’s biggest pleasure craft insurers. Strong market positions in the USA and UK, along with Australasia now, means this 100 year-old business operates with a seamless approach around the globe. One of the main benefits derived from this is a vast network of connections, and it is this very item that will get you out of trouble faster and easier than anything else.

MacPhail explains, “I don’t believe there is any other business that insures more boats cruising the world’s oceans than we do. Outside of war zones or areas where it’s extremely dangerous, you are free to explore the planet. We are certainly not encouraging boats to visit Nigeria at the moment, nor the Eastern side of the horn or whole of West Africa for that matter. The same can be said for the Southern Philippines, because you are only going to get yourself kidnapped and held to ransom.”

“Apart from that we can insure you for pretty much anywhere. Importantly, it will be with the same set of clauses! Our competitors cannot do that and in turn that means you won’t have to be a Queen’s Counsel with 35 years of experience in insurance to work your way through their patched together documentation. We certainly have different warranties we apply to different boats and different values going into different places, but that is about the extent of it”, said MacPhail.

As you can see, it is possible to have it good. Now you may even want to have it even better than that, and when it comes to marine pleasure craft insurance, you really do need to speak with Pantaenius Australia.

The work you do now to understand your insurance needs, obligations and policy requirements will pay dividends for anything from a small claim to total loss. Start with good, work towards better and then get the best from Pantaenius.

Whether for power or sail, this is one mousetrap you need to check out. Call +61 2 9936 1670 today or see www.pantaenius.com.au for the all-important T’s & C’s.