DUAL underwriting perspectives: Navigating yearling sales and equine insurance

As Managing Director of Ashby Underwriting, I am thrilled to share my insights in the first edition of DUAL Perspectives. I have long been involved in the equine world having grown up on a farm where we had livestock and horses. This really sparked my lifelong passion for these animals. Buying a horse at yearling sales can be a thrilling yet complex process. From evaluating the horses to understanding the nuances of equine insurance, there are many factors to consider. This article provides practical guidelines for navigating yearling sales and securing the right insurance.

Understanding yearling sales

The Yearling sales are a pivotal event in the equestrian calendar. These sales feature one-year-old horses, known as yearlings, that are auctioned to buyers. The yearlings on offer have been meticulously prepared to showcase their potential as future champions, making these sales highly anticipated by breeders, trainers, and investors alike.

Here are some ideas for buyers:

1. Research and preparation

Study pedigrees: A horse’s lineage can provide insights into its potential abilities and value.

Physical evaluation: Assess the conformation, gait, and overall health of the yearlings. Consider hiring a professional equine veterinarian or a bloodstock agent to provide a professional opinion.

Trainer evaluation: Speak with the intended trainer of the horse to establish whether they believe the horse is suitable to be turned into a Derby winner.

2. Sales process

Auction dynamics: Understand how auctions work, including bidding strategies and the importance of setting a budget. Attending a few sales as an observer before participating can be very educational.

Pre-sale inspections: Thoroughbred Sales offer the opportunity to inspect horses before the auction. Use this time to make detailed assessments and ask questions about each horse.

Insuring your horse

Once you have purchased a yearling, we believe it is crucial to protect your investment with the right insurance. This can be done from Fall of Hammer and here is what you need to know:

Types of equine insurance

Mortality insurance: This is the most common policy type, covering the Purchase Price and expenses of the horse in case of death due to illness, injury, or accident. Fall of Hammer coverage is important because at Auction the successful buyer is responsible for the costs as soon as the auctioneers hammer comes down. If a horse were to get loose at the Sales ground and injure itself the new owner must settle the auction bill.

Major medical and surgical insurance: Covers veterinary expenses related to illness or injury. It is often an add-on to mortality insurance.

Fertility or infertility: This type of coverage is particularly important for breeding stock. It covers financial losses if a horse is unable to breed or becomes infertile.

Ashby Underwriting offer specialised insurance policies, such as coverage ensuring the horse's larynx functions properly, crucial for its athletic performance. Another key policy covers Wobbler syndrome, a condition affecting the horse's spinal process and nerve function, which can impact its health, safety, and performance.

Choosing an insurer

Specialised providers: Work with insurers who specialise in thoroughbred coverage, as they will better understand the unique risks and needs.

Reputation and financial stability: Choose insurers with strong reputations and industry knowledge.

Insuring a horse, particularly a yearling, requires a tailored approach. Each horse is unique, and so are the risks associated with them. Comprehensive insurance should cover not just mortality but also potential veterinary expenses and some forms of loss of use. At Ashby Underwriting, we aim to ensure that our policies are customised to meet the specific needs of each horse and owner, providing robust protection against a wide range of scenarios.

In the upcoming months, I will be actively involved in various events, shows, and races, which allows me to stay connected with the industry and offer on-the-ground support to our clients. I will be attending major sales events, providing consultations, and participating in industry discussions on best practices for equestrian insurance. These engagements help me stay at the forefront of industry developments and help to ensure that Ashby Underwriting continues to deliver.

Closing thought…

If I were to offer one crucial piece of advice for insuring a yearling, it would be this: ensure you understand the specific needs and risks of the horse you are investing in. A one-size-fits-all policy rarely works in this industry. Work with an insurer who can offer a bespoke solution that caters to the individual needs of your yearling.

Whether you are new to yearling sales or an experienced buyer, the process involves a combination of research, expert guidance, and careful planning. Take on board advice and stay informed about best practices so that you can navigate the complexities of horse buying and equine insurance with confidence.