Sports insurance as a risk transfer mechanism : an insight with a special focus on rugby in Malta

Abstract

The purpose of this study is to identify the knowledge and adequacy of insurance in the local sports scenario. A comprehensive examination is conducted on the rugby sector in Malta. Literature deals with risk management, identifying the risk exposures faced by the participants. Moreover, different techniques are then observed to mitigate such risks. On the basis of such studies, rugby players are asked about their experience in the game, from the risk exposures they face to their appraisal of insurance as a risk transfer mechanism. Insurers are also interviewed to get their opinions about the issue of providing coverage to sports people, as well as the performance of such product in the local market. Testing of the hypotheses suggest that the severity of injuries is the same to all participants, opting for an insurance cover is not dependent on having suffered an injury and the adequacy in sports insurance is not reliant on any factor. While the feedback of the participants to get protected is quite positive, there still remain some hiccups that need to be tackled for the benefit of all responsible governing bodies.