The Rhode island-headquartered Falvey Yacht Insurance division of Falvey Insurance Group has stopped underwriting insurance policies for the yacht, luxury yacht and charter communities, effective November 21st 2017. Falvey Yacht Insurance is headquartered in North Kingstown, RI and has an additional office location in Ft Lauderdale, Florida.
Falvey, which had a binding authority, was reported by Insurance Insider to have passed $70m in losses to its Lloyd’s insurers as a result of the 2017 hurricane season.
US advocacy, services and safety group Boat Owners Association of The United States (BoatUS) estimated last month that more than 63,000 recreational boats were damaged or destroyed as a result of Hurricanes Harvey and Irma, with a combined boat-only damage of about $655m.
Falvey Yacht Insurance insured the claims through a JLT-arranged binder. The Falvey yacht book was 60% written by MS Amlin, with the remainder of its capacity coming from other Lloyd’s insurers, according to the Insider report.
Mike Falvey, President of Falvey Insurance Group, cited the uncertain future of the yacht market as the primary motivation for the closing, as well as the need to focus on the group’s “market-leading positions in cargo and marine pollution”.
Falvey said that, “despite the hard work and commitment of growing both yacht and charter, Falvey Insurance Group is making a difficult, but necessary choice in order to focus our resources and energy on our current and upcoming ventures where the opportunities are greater. We appreciate the support over the past eight years and look forward to continuing to serve our brokers and assureds in the cargo and vessel pollution markets.”
Falvey Cargo Underwriting, Falvey Shippers Insurance and Safe Harbor Pollution Insurance are operationally unaffected by the suspension of the yacht division, the company said
Falvey Insurance Group began as Falvey Cargo Underwriting in Rhode Island in 1995. Falvey underwrites on behalf of Lloyd’s, CV Starr, Berkshire Hathaway and Argonaut Insurance Company.