Real insurance for fantasy sports

As of 2018, fantasy sports was considered to be a $13.9 billion market worldwide, forecasted to grow to $33.2 billion by 2025. In the United States, fantasy football alone is a $7 billion market.

About 70% of fantasy sports participants are competing in leagues that charge fees, with players spending an average of $653 on them. That’s not a huge figure, but there are leagues where the entry fees can be more than $100,000.

The increase in popularity of fantasy sports, along with the potential for a lost season due to a key injury, led to the creation of fantasy sports insurance in 2009. The first products were offered by Intermarket Insurance Agency with the backing of Lloyd’s of London. The latest information available showed that over $15,000 in losses was paid for the 2012 NFL season.

Milliman’s Jamie Shooks discusses how the risks in fantasy sports insurance align with the general traits of an insurable risk in the article “Fantasy sports insurance: Is it an insurable risk?