Extreme claims

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The growing trend towards extreme sports is of increasing concern to underwriters, says Jonathan Broad

Generally today people have more leisure time coupled with a greater disposable income - people holiday worldwide to exotic places or even work abroad on a regular basis. While the majority of leisure pursuits will not affect an insurance application, the underwriter and the adviser are seeing more applications where some of these pursuits may impact the underwriting decision.

Some of the more regular pursuits are scuba diving, motor sport, mountaineering and private aviation, be it either fixed wing or rotary wing.

Greater risk

Occasionally the applicant may participate in more unusual pursuits; these are usually classed as extreme sports at which point the advice of the reinsurer may need to be sought. A full account of these pursuits is always welcomed from the adviser with as much information as possible, such as whether they are a member of an organised and recognised official club; what qualifications or level of expertise they have attained; the number of hours each year they partake in the activity; what safety procedures are undertaken whether in the UK or abroad; whether there is likely to be an increase in the client's time spent pursuing these activities; whether they are competitive; and if there is any accident history.

Some of the more unusual activities include: bridge bungee, cliff jumping, crane bungee, giant swing, helibungy, jet boating, kayak slide, mountain boarding, paragliding, power kiting, quad biking, sand boarding, sea kayaking, tandem skydiving and zorbing.

Generally it is accepted that the greater the exposure to these conditions the greater the risk element, therefore, as much information as the client can supply with specific details to the amount of time involved in these pastimes is useful. It helps the underwriter when this can be submitted together with the application form, therefore saving valuable time in not having to issue point of sale questionnaires and with the further advantage of being able to turn the application round in a faster time.

Accident rate

Some of the reasons that we ask for certain information may be because of the following:

• Many private pilots fly a minimum number of hours to maintain their licence and in practice have been shown to give up the sport after around 150 hours of flying experience.

• Gliding - statistics show a mortality risk of approximately two per thousand per 100 hours in the air, and approximately one per thousand per 100 launches. The average flight lasts approximately 30 minutes.

• Scuba - most sports divers use SCUBA (self-contained underwater breathing apparatus). One or two aluminium or steel cylinders provide the reservoir of air required. The maximum safe depth for compressed air is about 50 metres. Generally the deeper the dive, the greater the risk of accident and the greater the risk to health. For the deeper dives the necessary equipment becomes more complex and a high level of training and experience is necessary. BSAC (British Sub Aqua Club) statistics show that a greater proportion of incidents occur at depths greater than 30 metres. However some divers partake in internal exploration of wrecks, which clearly constitutes a greater risk.

• Paragliding - although flights of only a few minutes are usual, longer durations are possible. Pilot proficiency ratings are based on duration, height gained, and distance covered.

• Mountaineering - mountaineering and rock climbing have increased in popularity in recent years. While there are statistics available regarding the number of accidents and fatalities, statistics relating to exact numbers of participants are not available. In mountaineering, fatalities and injuries arise primarily from errors of technique and judgement by the climber, rapid climate changes and other localised risks, such as rock falls or avalanches. The climber's experience, agility, fitness and endurance are important considerations. The more frequent the participation in the sport, the greater exposure to risk.

However, more experience is gained and there is a greater ability to assess prevailing conditions and risks.

It is important to distinguish between trekking, indoor climbing and mountaineering/rock climbing. Trekking or hill walking does not involve the use of any special climbing equipment such as ropes or crampons (spiked appliances fitted to boots), while indoor climbing is performed on artificial climbing walls, and there is little risk involved.

Extreme sports include:

• Adventure racing - racing (usually in a team, but sometimes solo) for long distances across challenging terrain. Most races last from three to 10 days although shorter (eight to 48 hours) races have evolved. The 'iron man' event held each year in Hawaii involves the triathlon events of swimming 2.4 miles (3.9km), cycling 122 miles (180km), and a marathon of 26.2 miles (42.2km). The distance itself is gruelling and the extreme weather plays a major role, with temperatures in excess of 30°C and high humidity, often accompanied by gale-force winds.

• Bungee jumping - involves leaping from a platform, such as a bridge or a crane in excess of 50m, while tethered at the ankles by a bungee cord (heavy, extremely strong elastic). Many people bungee jump as a one-off experience and if all safety precautions are in place there is little risk. Accidents usually result in serious injury or death.

• BASE-jumping - believed to have started in 1978, BASE-jumping involves parachute jumping from buildings, antennas, spans (bridges) and earth (cliffs). As jumpers successfully complete all four categories, they receive their official BASE number. The practice is illegal in most countries (including the UK); however, there are some well-known legal sites in France, Norway and Brazil. BASE jumpers will normally have completed at least 100 skydives and will have particularly strong free-fall skills. Some jumps may be as low as 75m (250 ft) with the journey to the ground lasting only a few seconds. The margins for error are minimal, making the sport highly dangerous.

• Canyoning and canyoneering - canyoning is a new high-risk, high-thrill sport, becoming increasingly popular in certain areas of the world such as Europe and the US. It involves the adventurous descent of mountain canyons, usually involving a variety of activities such as abseiling through waterfalls, rock climbing, hiking, jumping into water pools, swimming, wading through torrents, scrambling, floating, and tobogganing. Normally, participants will wear wetsuits and helmets and will carry rucksacks. Canyoning can be unpredictably dangerous and the experience and skill of the guides, the weather and the care taken to avoid the threat of flash floods largely determine the success of a canyoning event. Experienced canyoneers will look for telltale traces of mud suddenly churning in the streams or rivers as a sign of potential danger. Because canyoning is so new, tour operators are presently unregulated. In 1997, flash floods claimed the lives of 11 people in Arizona and in 1999, 19 people died in a flash flood in Switzerland.

• White water rafting - white water rafting has become increasingly popular but remains a hazardous activity due to a lack of uniform safety standards. Poor equipment, alcohol and inexperienced guides have all contributed to the accident rate. While it is relatively safe in the UK due to the lack of suitable rivers, careering down white water rapids accounts for several deaths each year worldwide.

• Zorbing - zorbing is the latest extreme sport invented in New Zealand approximately three years ago. A zorb is an inflated, transparent, plastic sphere measuring approximately three metres in diameter. Suspended inside is a second sphere, which is attached to the exterior sphere by a number of ropes. The space between the two is filled with air. The participant, referred to as a 'zorbonaut', is strapped into the zorb by a harness and then propels the craft downhill or along the flat by executing a series of somersaults. Speed downhill can reach 50 to 60 km/h. At the bottom a net or flat arrival area stops the zorb. Different forms of zorbing include hill zorbing, kids zorbing, snow zorbing and water zorbing.

Jonathan Broad is a life & disability underwriter at Scottish Equitable Protect.

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