Emerging Trends in Sports Insurance: Technology and Risk Management

The sports insurance industry is rapidly growing. By 2025, the global market is expected to reach $600 billion, and it is anticipated to grow consistently until 2030. Why is this? Factors include increased interest in insurance for professional, amateur, and school sports. In particular, the professional sports industry is largely responsible for growing the sports insurance market. Standard insurance policies cannot always cover the risks that accompany sports, and considering the expenses of top players’ contracts, professional teams cannot afford to continue having to pay their best players their salaries on the off chance that they get critically injured. 

 

With the advancement of technology, the increase in injury rates associated with sports, and the overall development of the sports industry, more and more people are seeing a need for sports insurance. Here at O2 Sports Insurance, we want to be as informative as possible to our consumers about the sports insurance industry so that they can understand the market. In this blog, we will highlight a few of the many trends in sports insurance today.

 

Trend #1: Embedded Insurance

 

Embedded insurance is insurance coverage given directly to the consumer at the point of sale. Favored for its quick accessibility, embedded insurance offered digitally is now trending in sports insurance. Essentially, consumers can buy and receive insurance coverage almost instantaneously using a digital platform. Many companies are experimenting with this idea, and it is definitely something to key your eye on for the future of sports insurance.

 

Trend #2: AI

 

Artificial Intelligence (AI) is the technology everyone is talking about these days, and it is for a good reason. AI has unlimited capabilities, and as software becomes more advanced, it will only become more and more relevant to our everyday lives. In the sports insurance industry, companies such as Zone7 have created AI alert systems that can predict sports injuries. Zone7 serves as a tool to assess injury risk and can be used to decide the best insurance policy for a team or player. The sports insurance industry could be significantly impacted by this tool or a similar tool.

 

Trend #3: Big Data

 

Data has always played a vital role in business decision-making. As available data becomes more accessible, we see big data, or large, complex data sets, much more often. Sports insurance companies, as well as insurance companies in general, can use big data for customer acquisition, customer retention, and risk assessment. Insurance companies can use big data to determine customer needs, wants, and desires. Insurance companies can build effective, consumer-centered marketing campaigns using unstructured data, particularly user-generated content, such as customer reviews and social media comments. To retain customers, insurance companies can analyze data pertaining to their specific company, as well as continue to monitor industry trends. Lastly, to assess risk, insurance companies can utilize predictive modeling to determine the risk of different clients.

 

Trend #4: Cyber Coverage, Media Coverage, And Copyright Infringement

 

Lastly, cyber coverage, media coverage, and copyright infringement are increasingly relevant to the sports insurance industry. While injuries are a significant focus for sports insurance, other issues arise in the industry that may need special coverage. Cyber insurance, which protects your company from serious data breaches, is used by professional teams and sports and recreation businesses. This coverage is crucial in the event that sensitive customer information is compromised. Similarly, media liability and copyright infringement insurance protect sports teams and organizations from allegations that media content produced by said organizations inflicted distress.

 

We Got You Covered

Here at O2 Sports Insurance, we got you covered. We want our consumers to be well-informed and knowledgeable about the sports insurance industry. If you need coverage, request an online quote today, and we will provide you with quality solutions.