Concussion claims and head injuries are a concerning grey area for the insurance industry, according to one top broker who specialises in the field of sports.
Writing in Gallagher’s Q2-18 Market Overview Report, head of sports Steve van Leeuwen notes that while there is still much uncertainty surrounding the long-term risks of head injuries, sporting organisations across Australia have already taken action.
“Each of the major codes has a concussion plan in place that is constantly evolving as more medical information comes to light,” he writes. “Whether in the form of baseline testing, in-depth head injury assessments, sport rule changes or mandated sit-out periods, leagues and teams are responding to the challenges head injuries present.”
From a medical perspective, the biggest long-term risk associated with concussions is Chronic Traumatic Encephalopathy (CTE) – a progressive degenerative disease with symptoms ranging from memory loss and confusion through to dementia and depression.
“We may not currently know the full extent of concussions and their links to long-term damage, but we can make strong assumptions that there is correlation between head injuries and CTE, based on the results of testing to date,” writes van Leeuwen.
However, while progress is being made on the field and in the lab, van Leeuwen says there is still significant uncertainty around insuring head injuries.
“The medical science surrounding head injuries is evolving and, because the insurance industry is data-driven, without clear cut data and medical definitions it becomes difficult to know how an insurance policy would respond,” he writes.
Unsurprisingly, this uncertainty is impacting the insurance industry.
“Insurers, both nationally and internationally, are nervous of the long-tail nature that concussion claims could present and this is where personal accident policies could help mitigate losses,” writes van Leeuwen. “It is these long-tail claims, alongside possible legal action, that could have the biggest impact on leagues, teams and insurance.”
Despite apprehension across the industry, van Leeuwen does stress that insurers are by no means ignoring the issue.
“The insurance market is hardening and, in order to provide terms, underwriters require more detailed information on the response to head injuries individual teams and leagues are making,” he writes.
Looking ahead, van Leeuwen says the industry is already seeing policy structure and framework changes in response to head injuries.
“Over the coming years, the industry could move towards a different set-up of insurance policies or utilise different versions of a policy to respond to concussion-related risks,” he says.
While the sporting, medical and insurance communities are tasked with managing the impact of sports-related concussions, van Leeuwen also stressed that the industries must not lose sight of the players themselves.
“Sport plays an integral part in our society, but safety must come first,” he writes. “Continued education and awareness on concussion rules and protocols is, therefore, paramount for players’ ongoing welfare.”
