How can broker schemes help entice the next generation of hobbyists?

There are many hobbies where the average age of enthusiasts is more senior, with the pastime itself perhaps requiring a certain level of disposable income to enjoy.

For example, a September 2024 article by Heritage Insurance Brokers stated that the average age of a classic car owner was 54-years-old, while a March 2024 Robb Report piece noted that the average age of superyacht buyer today was 50-years-old.

Keen hobbyists will undoubtedly want to see their favourite pastime flourish, especially in terms of attracting the next generation of participants to futureproof certain hobbies’ survival and development.

How can broker schemes help with this mission statement to secure the longevity of pricier, equipment heavy hobbies?

Participant pipeline

This is a question that classic car and bike broker Peter James Insurance has sought to tackle since 2022.

Garry Carlin, head of classic at Peter James Insurance, told Insurance Times: “We’d plateaued in terms of our business model and the [classic car] sector as a whole, which attracts an older demographic, was fairly stagnant.

“We identified that we typically appealed to the over 45s and there were limited signs of new people coming through.”

In a bid to change this environment, the broker decided to partner with car clubs – a primary motivator of this action being to introduce a younger demographic to the classic car market.

For these exclusive car club partners, Peter James Insurance provided an entry point insurance product via a broker scheme, which offered 60% to 70% premium rate reductions on cover.

Carlin said this strategy quickly reaped results.

In 2022, for example, Peter James Insurance partnered with both the Vintage Motorcycle Club and the Jaguar Enthusiasts’ Club. These clubs had around 30,000 members between them, but only 6% or 7% of this pool were insuring with Peter James Insurance.

Following the introduction of the broker’s scheme, these proportions are now approximately 30% and 20% respectively.

Carlin continued: “There were a myriad of reasons [for this penetration uptick], but the attractive rates for young drivers was certainly part of it. Because everything is coming from existing members or their children, we are attracting better risks and people associated with the classic car movement.

“It’s increasing car club membership and working for us from a loss ratio perspective.”

Peter James Insurance now partners with 12 car clubs and expects continued momentum around its broker scheme to propel it into the top three UK classic car brokers by the end of 2026, entirely via organic growth. In 2022, it was just outside the top five.

Sponsorship role

Specialist yacht and leisure craft broker Pantaenius has been similarly proactive in terms of futureproofing.

When Simon Hedley started as the broker’s head of commercial partnerships three years ago, he elected to start safeguarding the future of boat-based hobbies by focusing on who would be the next generation of policyholders – he employed tactics such sponsorship deals and social media posts to raise visibility of these hobbies.

The broker’s major sponsorship initiatives support the Disabled Sailing Association in Torquay and the Wetwheels Foundation, a national charity founded by Geoff Holt to enable those with profound disabilities to enjoy barrier-free boating.

Pantaenius also sponsors numerous sailing club regattas, owner rallies – where boat owners have a sea trip together followed by a dinner or other social event – and even angling competitions, offering hospitality and prize giving. Sometimes it even takes along its own-branded beer.

The broker also networks at boat shows and collaborates with manufacturers of life jackets and electronic safety equipment.

Hedley said: “We get plenty of new business directly from sponsorship and we value events where we can enhance the boat owner’s experience. After a rally, for example, an owner may decide to upgrade their boat.

“Some is a scattergun approach, but we also have initiatives specifically aimed at the younger generation.

“I genuinely think [this activity is] essential to achieve the growth we need and we have noticed that some of our main competitors have been following suit.”

A secure future?

On the other hand, specialist brokers involved with insuring some other upmarket leisure pursuits currently have no concerns about the future.

For example, motorhome and campervan insurance specialists Comfort Insurance does not detect any slowdown in demand and spends nothing on sponsorship.

It does, however, constantly monitor websites and social media to look out for consumer issues and has contingency plans to address potential threats, like the possible introduction of pence per mile driving to replace the UK’s current road tax.

Scotland’s Visitor Levy Bill could also impact this marketplace.

Confirmed as an Act in Scotland on 5 July 2024, this regulation applies a visitor levy to motorhomes staying overnight on campsites – this could amount to £20 a day, according to Birmingham Live.

Golfguard, a broker which insures fishing equipment worth up to £16,000 through its Anglers First Insurance scheme, is happy just to rely on personal recommendations.

Margaret Belsey, director at Golfguard, said: “By providing a really good service to parents and keeping premiums affordable, we don’t really have to spend anything on advertising.

“It’s normally the dear old mums who phone up on behalf of both husband and youngster, so having a good rapport with them is half the battle.”

And Sydney Charles Aviation Insurance Brokers, one of the biggest UK insurers of gliders, is not concerned about future demand in this area – even though the average age of a glider client is 60.

Although it sponsors the British junior gliding team and the British Gliding Association’s flight simulator – which gets taken to events to whet young people’s appetites for gliding – the firm maintains that its primary motivation with sponsorship deals is to assist younger participants rather than generate business.

Philip Lepp, chairman and managing director at Syndey Charles Aviation Insurance Brokers, said: “Of course we get name awareness, but I don’t think there would be a risk of demand drying up if we didn’t do these sponsorships.

“We like to give something back to the people who support us and our focus is to look after those who are young and up and coming as they tend to have less money to pursue their hobbies.”

Gliders at the top end of the market can be worth £300,000 to £400,000, while the average sum assured even for a mid-value motorhome is around £75,000 to £80,000.

The role that broker schemes play in the hobby arena is therefore an important one – encouraging younger people to engage with these niche, yet costly, hobbies not only helps to futureproof these activities and clubs, but it also ensures that brokers have a ready pipeline of future customers too.