Although insurance claim statistics for concussion-related injuries in sports are difficult to obtain, there is a clear trend of rising claims in professional sports both in Australia and overseas. This trend is underscored by several high-profile cases currently making their way through the Australian court system, highlighting the growing legal and financial exposure faced by clubs and their insurers.
Despite these developments, insurance for sports participants remains widely available at community, amateur and professional levels — at least for now.
When IB reached out to the Insurance Council of Australia (ICA) for comment, the peak body stated, “Insurance for sport participants remains widely available for both community, amateur and professional levels.”
However, this reassurance may not last.
Last year, Zurich Insurance Group announced it would exclude concussion injury claims from its active policies for high-contact professional sports. While brain injury claims are not yet a serious industry issue in Australia, this could change rapidly if any of the current court cases result in significant verdicts or settlements.
Overseas, the consequences have already been substantial. The US$1.5 billion NFL concussion settlement in the United States followed a lawsuit by thousands of retired NFL players suffering from neurological conditions linked to repeated head trauma. In the UK, more than 1,100 former Rugby Union and rugby league players are seeking damages from governing bodies, with similar actions underway against other rugby associations.
Australia is not immune to this trend. The AFL is currently defending two class actions in the Victorian Supreme Court, including a case brought by former Collingwood AFLW vice-captain Emma Grant. Grant alleges that Collingwood was negligent in its handling of her concussion, leading to her early retirement and ongoing health issues. These cases, while complex and slow-moving, could have far-reaching implications. Janine Clark (pictured), partner at Clyde & Co, said insurers may soon also face impacts from dependency claims brought by families of athletes who have died as a result of their injuries, including from suicide.
“There are difficult breach and causation hurdles to overcome in addition to the various defences along the lines of ‘voluntary assumption of risk’ which will be relied upon by the clubs and there is no guarantee that the plaintiffs in these test cases will be successful,” she said.
However, if any of these test cases are successful, Clark said the effects will likely cascade down to amateur and grassroots levels, prompting insurers to reconsider their underwriting positions –especially those already heavily invested in high-contact sports.
Given this environment, brokers who work with sports clubs need to act now to raise awareness and ensure their clients are adequately protected. “Brokers play a vital role in liaising between clubs and insurers to obtain the right cover for their clients for the right premium and negotiate the future risks which may arise,” said Clark.
Another emerging concern is the sharp increase in female participation in contact sports, which brings its own insurance implications. Studies indicate that the female brain contains more delicate axons, making women more susceptible to concussion-related damage. “In AFL, a study of concussion data revealed that the incidence of concussion was higher in the AFLW compared to the AFL,” Clark said. This suggests that, should a surge in claims occur, a significant proportion could come from female athletes.
Ultimately, Clark said that addressing these risks will require a “team effort between all parties” and that action is needed sooner rather than later to ensure the ongoing viability of sports clubs and the insurance market that supports them.
Are you a broker working with sports clubs? Please share any insights you have about concerns around brain injury claims below.
