Hybrid boats are hitting the market and the growing popularity of hybrid and electric boats have directly impacted what boaters expect from their insurance. According to the NMMA boater registration report (Feb. 4, 2008) and U.S. Census Report (2006), one in 10 American families owns a boat. Understanding new marine technology could help an independent agent land new boat and yacht customers and possibly grow the books of other personal insurance products.

Climate change, carbon footprint and biodiesel are all words and phrases that have become part of today's lexicon as everyday Americans are constantly reminded about what they are putting into the environment. As the new administration came into office, environmental issues have gained even more attention.

Increased focus on the environment, a slowing economy and record high fuel prices have all led the marine industry to develop new, innovative products. During the past few months, green boating has been grabbing headlines. Most of the news has surrounded electric boats, which use no fuel at all, and hybrids, which use an integrated propulsion system made up of fuel and electricity. Some hybrids have even included solar panels like Island Pilot's new DSe trawler.

Boats from Frauscher and Sea Ray have begun implementing parallel hybrid systems powered by Steyr motors into one of their models. These motors function much like those found in hybrid cars. Eventually, it appears boat and yacht manufacturers will have a hybrid option in their lineup of vessels with the ability to both save on fuel and deliver the performance many boaters want.

What can an independent agent do to let customers know that they have what it takes to properly insure one of these innovative boats and yachts? There are four steps agents can take, with minimal investment, to gain the trust and loyalty from boaters interested in the newest technology on the market.

Talk to boaters about mechanical breakdown coverage. Early adopters are often the ones who want the newest gadget and the most innovative technology on the market. However, some of them might be anxious about the durability of new systems that are being used. Mechanical breakdown coverage that is included in some boat and yacht policies could ease the mind of an early adopter who is looking forward to mixing water with electricity. Taking the time to find a carrier that includes this coverage can build trust with a customer through a shared understanding of what matters most — being able to get the boat back in the water quickly should something break without a major out of pocket expense.

Understand which carriers know boats and yachts the best. Matching customers with insurance carriers that have high level claim service will build loyalty with that customer should the unfortunate event of a claim occur. If an auto or home adjuster who is not a boat expert visits a boater that has a claim, are they going to believe that carrier or agent has any idea what's best for their watercraft? Probably not. This factor is even more important with boaters who are more sophisticated and have made the investment in new, more complex technology. Partnering with carriers that have a good understanding of the inner workings of the various applications of "hybrid" technology will help deliver a positive experience for the customer.

Provide tips and information focusing on customers' environmental interests. Someone buying a hybrid boat may not only be an early adopter of new technologies, but they may be paying serious attention to how they can reduce their environmental impact. Connecting with customers about two of their passions, boating and the environment, could help to develop a loyal relationship with that person. This also creates an opportunity to inform customers about new environmentally friendly behaviors for boating, home maintenance or car care to include in their life and the insurance implications of doing so.

Get out of the office and attend a local boat show, if possible. Some of the best feedback heard from agents is how they have made connections in the marine industry and are regularly updated on some of the latest trends at local shows. Meeting boat dealers at shows will let them know the insurance agent is committed to the marine industry and is a name that the dealer's customers can trust. Dealers appreciate this because they can then set a customer up with an agent they know ensuring the customer has a good boat-buying experience.

Hybrid boats and yachts will likely expand in popularity over the next few years. Instead of waiting to learn about them after they have flooded the market, use this time to take a leadership position in understanding these vessels. Doing so now could help to provide a competitive advantage for an agency by delivering knowledgeable service to the consumers who are buying them.