Haven Knox-Johnston on adapting to new markets
Why did Haven Knox-Johnston restructure, and how is it adapting to niche markets and new consumers?
In September 2023, Howden UK & Ireland launched its new business structure, essentially bringing all brands under one umbrella to offer a full spectrum of insurance solutions to the marine industry. The new business practice now operates under three distinctive trading styles, as Haven Knox-Johnston, Haven Knox-Johnston Specialist and Haven Knox-Johnston Commercial. It brings together the existing Howden Group marine businesses: Haven Knox-Johnston, A-Plan Marine, Howden Fastnet, Euromarine Insurance Services, plus Howden’s most recent marine acquisition, Curtis Marine.
Why reorganise and restructure?
Paul Knox-Johnston, sales and marketing manager (marine), says adding the Haven Knox-Johnston Commercial and Haven Knox-Johnston Specialist sister brands simplifies the company’s market offering while logically organising and bringing together a huge amount of marine insurance expertise.
“We are now able to offer a hugely expanded product offering with arguably unrivalled service,” he explains. “We have the main Haven Knox-Johnston (Haven K-J) brand for everyday boating and the bulk of leisure marine market coverage. Haven K-J itself remains at the forefront of our direct and wholesale business where leads come from direct marketing, other insurance brokers and our network of introducers within the marine industry itself.” Knox-Johnston continues:
Paul Knox-Johnston
“Haven K-J Commercial (comprising A-Plan Commercial Marine in Worcester and Howden Fastnet in Southampton) is able to support marine businesses across the industry as well as a wide variety of commercial vessels. And our Specialist team has access to niche markets that are able cover some of the more interesting and unusual risks, which the underwriters at Haven K-J cannot place on its books.”
The Specialist team has access to a wide range of insurers with appetite for a broad range of more unique and challenging risks and so are the ‘open market’ team for coverage in specialist areas such as boats used for Airbnb or personal watercraft, foiling boards, blue water cruising yachts, racing yachts, higher valued superyachts and the more extensive requirements that these risks require. “It means that a call into any of the Haven K-J offices can lead to cover for any type of boat you own,” explains Knox-Johnston.
Knox Johnston says the Haven K-J Specialist arm was launched in response to the growth in bespoke yachts and niche on-water activities. “Haven K-J Specialist has access to insurers which Haven K-J does not… and can try to find homes for risks which Haven K-J might not be able to. As new, niche and bespoke vessels are launched the Specialist team are best placed to source cover.”
Marine insurance – new challenges
The company maintains that opportunities are huge as the marine industry keeps developing with new client needs and desires regularly arising. Yet it also predicts a lot of change in the coming years as a new generation of customers more used to renting and not owning will grow.
“Anecdotal evidence from the Southampton Boat Show is that we have now passed the post-covid glow where boats were being sold like confetti and we are adjusting to the market normalising to how things were prior to covid,” says Knox Johnston. “From this we are also still seeing growth in areas such as people living aboard as house prices spiral and people search for alternative ways to live.”
What is clear to the company is that it now serves a diverse range of consumer types. “Covid brought in so many new entrants to our market diluting the pool of customers in a good way,” says Knox-Johnston.
“We have a new younger profile of customers coming through taking part in a wide variety of watersports and we must cater for them now and ensure they stay engaged in boating. The new marine industry consumer is far more digitally aware than in the past and we have seen an uptick in customers coming to us online. However, we need to keep in mind that it is not all digital and our marketplace is still considerably top heavy when it comes to age. You need a team of dedicated people available to talk in person to customers as their journey is not always a clear one and they need help through the process. So don’t always think it’s all digital, digital, digital – we are fully aware of how important our crew is.”
The entire company is adapting to shifting economic trends. With more participants, logically, there will be more claims and, if claims rise, so do premiums. The changing climate and more extreme weather events also risks causing an increase in the number of claims. The costs involved with keeping a boat abroad and the weaker pound means claims can also be more expensive for boats kept in other countries.
“Brexit was a challenge, but we are now settling into the new normal with our office in Ireland able to cater for all of our EU boating customers.”
Paul Knox-Johnston, sales and marketing manager (marine)
“The specialist market has also changed as people become more adventurous and want to live their lives to the full. Therefore, as they do this the risk profile changes and we need to have a home for the type of customer who is looking to venture further afield.” In the commercial sector, the commercial team also finds challenges as businesses are being hit left, right and centre with increased costs from interest rates to energy costs, parts and supplies.
Insurance is another expense to add to business outgoings but is a hugely important one and, as everything else increases, so does insurance as the costs are escalating on claims too.
Haven Knox-Johnston brand reputation
The Haven Knox-Johnston boat insurance brand dates back to 1992 when Haven merged with Knox-Johnston Insurance Brokers to create Haven Knox-Johnston under the ownership of Amlin. The ownership of Haven K-J then remained pretty stable for 18 years, despite a brief name change to MS Amlin Boat Insurance. In 2020 Aston Lark purchased the boat insurance book of business from MS Amlin and relaunched the firm using the Haven K-J name.
The insurance market has undergone considerable consolidation over the last few years and in 2022 Aston Lark was then acquired by Howden, one of the top 10 largest insurance brokers in the world. Both Howden and Aston Lark owned other marine insurance businesses in their portfolios including A-Plan Commercial Marine, A-Plan Marine, Euromarine and Howden Fastnet. To benefit from the wide depth of knowledge across all these brands, the last 12 months has been spent creating one marine practice, bringing all brands together under the Haven K-J brand.
With decades of experience in the field, it is little surprise that the market looks to companies including Haven K-J when potential issues emerge. Haven K-J’s Tony Malkin, Karl Davis and Paul Knox-Johnston are involved with British Marine’s working group on the use of lithium-ion batteries and Knox-Johnston says it is fundamental to be on top of emergent trends.
Paul Knox-Johnston says: “There have been many articles written and forum discussions on this subject and, as we try to move to a greener future, the alternatives must be safe and insurable. We must set out the parameters clearly and concisely of what customers of the emerging technology can expect to be covered for and what is not covered.”
Reflecting on where the marine industry goes next, Knox-Johnston says his first hope would be to encourage more young people to think of the marine industry as a career of choice. “It isn’t all about boat sales, charter companies, chandlers, marinas and boatyards,” he adds.
“Our industry also boasts insurance, finance, legal, marketing and many more career paths for those wanting to build a career in an industry where there is a lot of fun to be had alongside the usual hard work. “We also need to look at our environmental impact. The number of boats I see sitting on moorings, which have not been touched in years… We need to find an environmentally friendly way to deal with end-of-life boats and equipment.
“All of these issues need solutions and, believe me, I do not have them, but there must be people out there with the skills we need to help find the answers.”
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