As Formula 1 season shifts into gear, Chris Boatman assesses the underwriting implications of motorsport.
However, professional drivers competing in international events such as Formula 3, World Touring Car Championship, and World Endurance Championship – Le Mans – are still rated, but at a much lower rating than before.
This also simplifies the application process, as previously anyone participating in circuit racing had to provide full details of the type of event, car driven, size of engine, number of races, accident history etc.
Rallying
Rallying has always been a dangerous activity. It still accounts for the majority of motor sport fatalities, with a rate of 5.7 per thousand per annum for international licence holders. National licence holders have a more favourable mortality rate of less than 0.4 per thousand per annum.
Amateur rally drivers and co-drivers are therefore acceptable at standard rates, and professional drivers and co-drivers attract a small rating. With the higher mortality rate in international rallying, competitors are accepted with rates similar to those of F1 drivers.
Drag racing
Drag racing has built an impressive safety record, with only one fatality recorded in the last six years in the UK. Ratings are no longer required for life insurance.
Other types of UK motor sport activities.
The vast majority of UK motor sports continue to show good safety records and low fatal injury rates. They continue to be accepted at standard rates for life insurance.
Morbidity statistics are difficult to come by, but risk of serious injury remains significant. For this reason exclusions continue to be applied for disability and living benefit products for most motor sport activities.
Motor sports have long been a very popular British pastime and one in which participation is now safer than ever. RGA’s research indicates more favourable terms can be granted for life insurance applicants who participate in these sports, whether as professionals or amateurs. This will reduce the number of people needing extra premium ratings, speed the application process and improve completion ratios.
Chris Boatman is financial risk underwriting manager at RGA UK Services
