Tragic Sinking of Bayesian Superyacht Raises Insurance Concerns

The sinking of the Bayesian superyacht off Sicily's coast has ignited insurance debates. The disaster, killing tech entrepreneur Mike Lynch and six others, could lead to $150 million in payouts. With rising insurance rates and liabilities, the industry grapples with increasing climate risks and unexpected storm events.

The insurers of the Bayesian superyacht, which sank this month resulting in the deaths of tech entrepreneur Mike Lynch and six others, are facing potential liabilities of at least $150 million, according to industry experts.

The British-flagged 56-metre yacht, estimated to have cost around $40 million, capsized during a pre-dawn storm on Aug. 19 off Northern Sicily. The hull was insured by OMAC and a consortium including Travelers Companies Inc, Navium Marine, and Convex, with hull and machinery insurance likely covering around $40-50 million.

British Marine provided the yacht's protection and indemnity (P&I) insurance, covering third-party claims, which could total $200-300 million. Prosecutors in Termini Imerese are investigating the incident, which has cast a spotlight on the challenges facing yacht insurers amid rising hurricane and storm losses.

(With inputs from agencies.)