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Insight
Mutual set up to cover sports
clubs stops writing new business
Credit crunch or just a bad idea?
Either way
the Insuresport Mutual Limited has suspended
operations, since 30th of November last year,
leaving thousands of UK sports associations
having to find alternative cover.
InsureSport, a mutual set up to help sports clubs obtain civil
liability cover, has been suspended because other insurers are
“better placed” to do business.
InsureSport stopped writing new business and offering
renewals on 30 November 2008, but existing policyholders
will have their contracts honoured.
InsureSport was set up in 2006 by the Central Council of
Physical Recreation
(CCPR)
and West Midlands broker
Perkins Slade.
Policyholders, which range from ramblers’ associations to
gymnastics clubs, took 50% cover with InsureSport and the
remaining half with its main partners, including RSA and Zurich.
The idea behind the mutual was to assist clubs that were
struggling to find civil liability cover at a reasonable price.
John Ollard, head of finance at the CCPR, said: “The sports
insurance market has recovered from the events of 9/11. It is a
much more friendly place for sport than it was six or seven years
ago - and that’s really good news for CCPR members.
“The gap which existed for civil insurance in the sport sector has
been filled again. InsureSport enjoyed retention rates of 90%
and higher but the youth of the company meant we decided, in
this market, other insurers are better placed to provide cover and
field claims.”
Chris Nash, deputy underwriter for Sportscover, Lloyd’s syndicate
3334, said the mutual concept was a tough business model in
insurance.
Nash said throwing together all the risks into a mutual structure
rather than an insurance structure could cause problems.
He admitted to being puzzled by the explanation for suspension of
themutual; “I’msurprised that Insuresport Mutual’s administrators
think the market is expanding because the happenings of the last
six months, with SLE’s closure and AIG pulling back, definitely
point to a contraction in capacity for sports insurance.”
Chris added that Sportscover is willing to provide a solution:
“Sportscover are happy to talk to all sporting groups who want to
come out of the mutual and move to the piece of mind of A-rated
security such as Lloyd’s.”
PRESS RELEASE
Insuresport Mutual Ltd (IML) To Suspend Operations
The Board of Directors of Insuresport Mutual Ltd have today announced that it will suspend the
writing of new business and not invite renewals after 30 November 2008.
IML was set up in response to a concerted lobby from National Sports Associations, including members
of the CCPR, for an alternative to the conventional placement of insurance. This came as a direct
result, 5 or 6 years ago, of the “hardening” of markets, with significant increases in premium and, in
some cases, difficulty obtaining satisfactory cover.
As a consequence IML was launched on 1 December 2006, with support from the CCPR and Perkins
Slade Ltd. More than 300 National Associations, representing three million individual participants,
have subsequently joined the IML Scheme.
Ron Forrest, Co-Chairman of IML said:
“In reality, in the two years that IML has been trading, conditions have "softened" considerably and
significantly more capacity has become available in t e composite markets, enabling satisfactory cover
to be obt ined at reasonable cost. As a result the requirement for an alternative, such as IML, is
currently not so great. IML, therefore, has decided for now to suspend the writing of new business
and not invite renewals after 30 November. National Sports Associations covered by IML will see their
arrangements remain in place until their next date of renewal. Any claims arising from th se
arrangements will continue to be handled in exactly the same way.”
John Ollard, Finance Director of the CCPR and Co-Chairman of IML said:
“The role of the CCPR is to provide specialist support to its Member Governing and Representative
Bodies of Sport and Recreation in the United Kingdom. In the aftermath of 9/11 and other events,
many of our members came to us complaining about unfair increases in premium and requesting an
alternative. The fact that so many National Associations participated in IML is a testament to the
value of its work.”
Richard Doubleday, Director of Sport at brokers Perkins Slade Ltd said:
“Until further notice, Perkins Slade clients will have their insurances placed on a conventional basis,
using underwriters who have been involved in sport and recreation for many years. The transition
will be seamless. Although insurance market conditions are currently to the benefit of sport and
recreation in general, it is very possible they will harden at some point in the future and premiums
will rise. We expect the IML Board will continue to monitor the markets and, if and when they do
change, Insuresport Mutual will consider inviting renewals once more.”
P1
New faces on
Underwriting
Agencies Council
The Underwriting Agencies
Council (UAC) in Australia
elected six new directors
and associate directors
at its AGM in Sydney in
December. Heath Amber (Millennium); Kevin Corkery
(Lawsons Underwriting Australasia); William Legge
(Cemac); David Porter (AFA); Frank Van Rooy
(Australis) and Simon Trowell (Sportscover) were
elected. Chairman Martin McAvenna (Austagencies),
Damien Coates (Dual Australia) and John Iles
(SUA) were not required to stand for election.
The purpose of UAC is to serve the interests of
Australia’s underwriting agencies. UAC acts as a
representative body for the underwriting
agencies and is frequently involved in
lobbying on insurance legislation and
regulation. It also has responsibility to
promote the views of underwriting agencies
to the media and the Australian public.
UAC has around 65 corporate members,
representing the vast majority of Australian
underwriting agencies. Many agencies’
security is from Lloyd’s of London.
Agencies frequently operate in specialist,
nichemarkets, offering an array of insurance
products that may not be available from
other sources.
Above: Simon Trowell from
the Sportscover Group.
touchline