The Chairman of the Transpacific Yacht Race Committee asked me yesterday if I could spend some time with him when we arrive in Hawaii. I guess he could tell I was curious about the request because I hadn’t broken any rules – the race hadn’t started.
He said the problems with boats finding insurance to cover the trip to Hawaii caused some boat owners to drop out of the race after initial registration. I told him I would love to discuss this with him. The insurance I found only covers half the value of the Merlin’s hull but none of the running rigging, mast, boom and sails during the race. Once we arrive in Hawaii, my boat is fully insured and fully insured for the trip back, as others will do for me.
Everyone has problems with rising prices and finding full property insurance. This week̵7;s post by Liberty Ritchie, Farmers Insurance stops selling home owner insurance in Floridais just one of many where we’ve noted that people can’t find insurance to cover their property.
Insurance is an important product. Spreading the risk of loss over many allows people to invest in different types of real estate. It allows people to take their property to different parts of the world. It enables entrepreneurs to take risks with their capital. If it was available, it would have allowed more of my friends to compete against me in this epic race that I am starting today to Hawaii.
Profits are important to insurance investors. Without those who sell insurance to make a profit and secure a return on the risks they insure, there really would be no market for insurance and no interest from others to invest in the industry. So while many people love to complain about how insurance companies have handled their claims, there must first be an insurance product being sold.
I predict that many will begin to find non-traditional self-insurance mechanisms and pooling arrangements. The high prices and low availability require these alternatives.
The photo above of my dad and I kissing my mom was taken in Bermuda after my dad raced me on the Merlin over Father’s Day in June 2018.
Transpac starts today for me, and for readers who want to follow the race, here’s the link.
To the members of all the competition committees who have volunteered their time to allow me and my friends to compete against each other in the sport we love.
-Dedication of book, Mavericks & Merlins: Sailors and Renegades leave the coast, how about you? by Chip Merlin