....continued The average person tends to think that a satisfactory result for an insurer would be claims paid being anything less than total premium received. This is far from the truth. Some companies could consider a loss ratio (the percentage of claims incurred compared to premium received) of 55% to 60% as being only a reasonable result due to the nature of the business. Like the owners of all businesses, shareholders in insurance companies expect a return on their investment i.e. they require the company to make a profit. So what does all this mean in regard to how sports will manage their risk exposures in the future? No doubt traditional insurance will continue to have an important role to play - particularly in the liability and major loss areas. After all, the principle of insurance which dates back centuries is the pooling of resources to share the exposure to catastrophic loss. Change has been a common thread through this article and it is our opinion that different strategies in the management of risk will see changes in the way insurance cover is arranged in the future. |
As stated earlier, IEA played a pivotal role in designing appropriate insurance protection for sport some 23 years ago. We fully intend to play that same pivotal role in the 21st century by providing innovative methods to better manage the risks of the sports industry. By Rod Hughes, Chief
Executive Officer IEA
has offices in every state. National freecall number 1800 SPORT
1 Disclaimer The information provided in this Email and on the IEA web-site is to be used as a reference only. IEA accepts no responsibility for the accuracy of the information or your reliance upon it. The views of contributors are their own and do not necessarily represent the views of IEA |
