Xtreme Sports: Too Hot to Handle?

It is not surprising that, given our climate and natural geography, Canada is one of the top spots for both domestic and international travellers looking for fun in the snow. A short time ago, when someone said that they were off on a winter sports holiday, it meant they were going skiing, snowboarding or possibly tobogganing. Now the choice of activity has increased; the list is getting longer — and more extreme — each year.

More and more people want to go ice-climbing up frozen waterfalls or heli-skiing off remote mountain peaks or ice-sailing on frozen lakes. Weird and wonderful winter sports activities are now available for those looking for a more intense thrill. This means the risks associated with winter sports are also changing; in many cases, they are becoming more severe. So are these adrenaline junkies getting the insurance cover they need?

The Canadian Institute for Health Information (CIHI) in 2006 released a report showing that snowmobile incidents were the Number 1 cause of winter sports and recreation-related injuries treated in specialized trauma units. They accounted for 41% of these types of serious injuries as compared to snowboarding (20%), skiing (20%), hockey (9%), tobogganing (7%) and ice-skating (3%). Most of these patients sustain multiple injuries, with orthopedic injuries and head injuries the most frequently-occurring traumas. In 2003-04, the average length of stay in a specialized trauma hospital for these injuries was almost 11 days — nearly double the length of stay for admissions with less-severe injuries. More than one in five of these patients required respiratory support with a ventilator.

EXTREME LACK OF COVERAGE

As people travel to more remote areas and engage in more extreme activities, it is highly likely the risk of sustaining an injury and the severity of the injury will increase. It is a concern that people are taking part in high-risk activities without adequate insurance or, worse, without any insurance at all.

Some people travel without any travel insurance in place. A November 2005 survey for the U. K. Foreign and Commonwealth Office shows 31% of U. K. travellers on winter sports holidays do not take out travel insurance that covers skiing, snowboarding and other sports in which they intend to take part. Many people do not even consider insurance as part of their preparations; instead, they concentrate on making sure they have appropriate clothes and researching the nightlife. Yet the costs of medical treatment and repatriation can run into many thousands of dollars — and that does not include possible loss of income if the injured party is unable to work for some time.

Even for people who do buy insurance that specifically covers winter sports, it may only cover the mainstream sports. More extreme activities could well be excluded. Even if they are able to get travel cover for an extended range of winter sport activities, it will generally only cover the usual travel insurance benefits of lost luggage, delay, cancellation and international medical costs. Many of the accidents arising from winter sports can result in individuals being incapacitated for a long time and unable to work. Ideally, both domestic and international travellers should have cover that includes loss of income protection and/or personal accident benefits. These benefits are rarely offered as part of the travel insurance. This is where tailored winter sports insurance comes into effect.

As an industry, we need to do more to draw the potential risks to the attention of the travelling public and make clear the limitations of the standard travel policy for such activities. This is particularly important for brokers and agents who are advising customers at the point of sale. We also need to work with travel agents and tour organizers to assist them in educating their clients as to the cover afforded by travel insurance and the desirability of obtaining extended cover for personal accident and loss of income.

BEYOND TRAVEL INSURANCE

No doubt, travel insurance should continue to be the mainstay for the standard traveller; even so, appropriate additional cover can be made available to holidaying sports enthusiasts. Personal accident and loss of income insurance that covers all of the intended activities — with perhaps the exception of some of the most extreme — should be part of the holiday package and included in the cost of the holiday. If the organizers and/or venue operators of winter sports activities purchased the insurance as a package for all of their clients, the costs per person would be minimal. But the potential advantages to the client would be substantial should they sustain a serious injury in an accident. The organizer might also promote the insurance package as a value-added benefit for the traveller.

Another advantage of offering cover on this basis is that, unlike in the situation with travel insurance, insurers can rate this product based upon the venue or organizer’s safety record and approach to risk management. It would take account of the assessment of risk at that particular venue; it would also assist in promoting high standards of risk management amongst operators, since those with better records and risk management processes would pay less for the cover. Specialist sports insurers are working to try to change the traditional view of insurance provision for winter sports.

People will continue to seek more extreme experiences. These activities will generally have a much greater level of risk attached to them. Climate change will also have an impact on winter sports. Changing climate conditions may make extreme sports more hazardous, or they might encourage people to travel to higher altitudes or more remote places. Insurance cover needs to adapt to these changing circumstances. Travellers are not necessarily aware of all of the risks involved; they may not have appropriate insurance cover before they leave on their holiday. Having the correct policy cover at the venue or through the organizer will enable them to make sure they are protected before going out for their fun in the snow and ice.

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Personal accident and loss of income insurance that covers all of the intended activities — with perhaps the exception of some of the most extreme — should be part of the holiday package and included in the cost of the holiday.