Hagerty Insurance, a US-based insurer specialising in rare and collectible vehicles, is considering an expansion into Australia
This development, which was reported by Insurance Business Magazine, could introduce new competition to a sector long dominated by Shannons Insurance.
Hagerty’s chief executive, McKeel Hagerty, told Forbes Magazine that the company has received multiple requests to establish operations in Australia, including from within the insurance industry.
“There are a significant number of people who want us to enter Australia,” he said, as reported by Forbes.
“Those requests have come from other insurance companies, and the only problem is the resource it would take us to do. But Australia would be a place we eventually get to, I think.”
Both Hagerty and Shannons focus on insuring vehicles that often appreciate in value and require specialist valuation and claims expertise.
This sets them apart from mainstream insurers, which typically cover depreciating vehicles and may lack the necessary knowledge for collectible assets.
Hagerty noted that in the US, large insurance companies frequently collaborate with specialist providers for collectible vehicles.
“The big insurance companies think of themselves as department stores and have to sell everything, but we are a boutique and not a department store,” he told Forbes. “Nine out of the 10 biggest insurance companies in the US partner with us. They are the fiercest competitors, and they all have agreements with us.”
The company’s approach is to manage risks associated with appreciating assets, in contrast to the traditional insurance model focused on depreciating ones.
This allows mainstream insurers to refer clients with unique vehicles to Hagerty while maintaining their broader client base.
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