Sports and the insurance market in Malta

Abstract

This study aims to analyse the current state of the sports insurance market in Malta. Does the existence of this niche market in the insurance industry have potential for growth? Sports clubs and associations are the primary source at which to launch the investigation, in order to identify the need from the interested parties. The availability of such a specialised sports insurance product will cater for a variety of competitive sports. Whether it's a football club or a family going on a skiing holiday, specialised sports insurance provides appropriate medical aid and personal accident benefits to suit the specific needs of the consumer. This study will identify the main insurable hazards related to sports activities. A sports insurance policy may be for personal accident, liability and property. These will be designed for sports people as well as the environment in which they operate, meaning athletes, coaches, teams, facilities, equipment and third parties visiting the sports premises. Currently in the local market, the above may be insured under separate policies offered by general insurance companies. Furthermore, injuries and liability resulting from sports activities are normally excluded under a heading 'Hazardous Activities' in general insurance policies, such as a Personal Accident policy. The aim is to utilize the prospect of the niche market, by developing one specialised product that caters for all sporting risks. Ultimately, this allows a general insurer to expand its business, while further developing credibility in the market.