The insurers of the Bayesian superyacht that sank in a storm off northern Sicily, killing tech entrepreneur Mike Lynch and six others, could face at least $150 million in claims according to industry experts. The yacht, estimated to cost around $40 million, capsized and sank within minutes of being hit by the storm. Prosecutors are investigating the captain and two crew members for possible crimes of manslaughter and shipwreck. The hull of the yacht was insured for around $40 million by OMAC and other insurers while its protection and liability insurance was provided by British Marine. The P&I policy could be several multiples of the hull policy, potentially reaching $200-300 million, covering liability payments even if the captain or crew are found negligent. Yacht insurers have been facing increased risks and costs due to recent hurricane losses and severe weather events. Premium rates have risen significantly in some regions, and insurers have reduced coverage amounts due to the risks involved. Climate change is expected to further complicate the yacht insurance industry by bringing about unexpected events such as severe storms in unusual locations like the Mediterranean in August. The Bayesian disaster has highlighted the challenges faced by yacht insurers and the need for them to adapt to the changing risk landscape.
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