As one of the oldest legal industries on the planet, insurance has evolved significantly over the years, says Warwick Bloom, marketing strategist at the Hollard Insurance Group. And it will have to evolve further to deal with new realities.
Insurance serves to protect policyholders in the event that an identified risk materialises. In this case, “risk” exists when the outcome of an unforeseen incident or event is uncertain, or variable. The only time that insurance companies appear to deviate from covering “risk” in this traditional sense, is when it comes to life insurance (because death is an absolute certainty).
As society changes and modernises, so do the sorts of things that must be covered and the risks associated with that cover must also change. The burgeoning of fantasy sports leagues around the world provides an opportunity for insurance to demonstrate this adaptability.
Around the world, a number of sporting codes have made it possible for sports fans to build and manage virtual fantasy sports teams made up of real-life players. However, the “managers” of these fantasy teams cannot predict when a real-life star may suffer an injury on the (actual) field of play. Bloom observes that some insurance companies have started writing policies to compensate these “managers” for any loss suffered as a result of a real-life player suffering an injury which affects the performance of a fantasy team.
“This is not the first time that sports have given rise to unique insurance products. In 2006, a soccer fan took out insurance against potential trauma resulting from the premature exit of the England soccer team from the World Cup,” recalls Bloom.
These products provide a good example of insurance products and services being designed in response to the needs of the market, adds Bloom. “Like the developers of these products, we are continuously looking for different ways to do things, not just for the sake of being different, but to truly make a difference. ”
“We’ve carried that approach into our sponsorship of the Sports Industry Awards. The powerful role of sport in uniting people and its ability to create better futures for players and fans alike is well documented, and there are numerous platforms that celebrate our legendary sportsmen and women. But through the Sports Industry Awards, we go behind the scenes to celebrate the teams behind the teams, the people who make it possible for our sporting heroes to shine”.
“Just like those fantasy-league insurers, we believe in enhancing the enjoyment of sport through innovation,” concludes Bloom.
Endnote:
Hollard is sponsoring the Sport Industry Awards for the second time this year and in response to the changing landscape brought about by the Covid-19 pandemic as well as the safety of all involved, the awards will be held virtually.
