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?”
Please join me at Perrin Conferences’ National Construction Defect Conference November 16-18 at the Ritz Carlton Hotel Fort Lauderdale. I’ll be speaking on a panel entitled “Simulated Courtroom Daubert Challenge.”
The conference will host speakers and panel discussions covering topics such as “An Update on Complex Construction Cases – A Multi-State and Risk Industry Perspective,” “Deconstructing the Mansion,” and “The Insurance Coverage Landscape.”
In addition to its educational program, the conference will offer valuable networking opportunities. For more information, click here.
Claims related to construction defects are usually reported years after a home is completed. As new housing continues to grow, it’s probable that the number of construction defect claims will also grow in the near future. That scenario should impel home builders, contractors, and insurers to assess their potential construction defect losses in advance.
In his article “Analyzing construction defects: Practical considerations,” Milliman’s Jamie Shooks details the following items stakeholders should consider when estimating the total costs of construction defects:
• Type of insured: Subcontractor versus general contractor or developer
• Additional insured versus named insured
• Wrap and non-wrap policies
• Attached versus detached housing
• Community/home type
• Alternative fee arrangements
• Frequency and severity by report lag
• Evolving litigation
• Report year versus accident year analysis
• Use of predictive analytics