If you haven’t been to a gym in months, join the club. The health and wellness sector in Canada has had its fair share of struggles over the past year as coronavirus-related lockdowns have significantly impacted these establishments. In fact, a RunRepeat survey from August 2020 found that just 31% of Canadian gym members had returned to their gym since lockdowns, and that Canada had the highest percentage of gym members who were, at the time, considering cancelling their memberships altogether (at 39.2%).
The implications of this environment for health and wellness clients and their insurance have unsurprisingly been manifold, considering how they’ve had to adapt their businesses during this time.
“A lot of gyms have been closed to the traditional way of having their clients come through and use their facilities and equipment,” said Cheryl Madden, vice president of underwriting solutions and pricing, and chief risk officer at Wynward Insurance Group. “They’ve had to pivot – maybe they’re renting out equipment, holding virtual fitness sessions, or doing more one-on-one training in a virtual setting, depending on which part of the country they’re in.”
Other ways they’ve adapted have included selling more merchandise and diving deeper into offering nutritional guidance for their clientele, yet most gyms and health clubs have nonetheless seen their revenues plummet during the pandemic due to a drop in memberships and the recurring closures.
Added risks have also placed a burden on these businesses. From a property standpoint, health and wellness insureds have had to make sure that they meet all requirements when it comes to insurance, as far as their properties not being left vacant by ensuring that somebody is consistently on-site, noted Madden.
When they have reopened in between lockdowns, some gyms and health clubs have found themselves in the unfortunate position of appearing in the news for being at the centre of a coronavirus outbreak, which has shined light on the stricter hygiene practices now present at these businesses. The negative stories have been “few and far between,” said Madden, as health and wellness clients “have taken this very seriously, and have a high degree of adhering to guidelines and hygiene, often taking them beyond what’s required.”
One silver lining is that the hard market in insurance hasn’t impacted health and wellness insureds as significantly as it has the hospitality and residential realty sectors. However, these insureds are still seeing increases, “probably a minimum of 10% or more, like the rest of the businesses in Canada,” explained Madden, adding that Wynward hasn’t seen many losses coming from this sector.
Notably, the company offers health and wellness insureds a full suite of coverages, including property, crime, cyber liability, and professional liability, among others. After being in this space for some time, Wynward’s experts have learned the importance of flexing new muscles when working with health and wellness businesses.
“Five years ago, when we were writing gyms, it was pretty standard, in terms of the types of services that they offered,” said Madden. “That has changed and evolved a great deal, so being able to look at what kind of service they are offering [today is important]. They’re very bespoke, depending on the region and city that they’re in, so being flexible with the type of operations that we will cover [has become key].”
As for brokers, Wynward has more broadly kept its service levels high amid COVID-19. Knowing that the hard market has created additional pressures for everyone, the company is “here for our broker partners,” said Madden. After all, she continued, “They are the only way we do business, so we’re there to help them serve their clients.”
