AGF Members Can Expect to See Another Increase to Insurance Fees
On July 1, 2019, the Alberta Gymnastics Federation (AGF) insurance policy will renew and Toole Peet insurance has advised that insurance fees will be going up. The rate of increase and whether there will be a change in coverage is still to be determined. No insurance provider can begin to research options or provide a quote more than 90 days before an organization’s insurance renewal date. That assessment period began on April 2nd for AGF and will run until June 30, 2019.
Clubs accepting registrations for the summer session are advised to notify registrants that an insurance top-up fee may be required pending a rate increase takes effect before the summer class begins.
Why Another Increase?
- There have been significant claims within AGF membership and within the industry.
- Gymnastics is in a high-risk market with few insurance carriers willing to provide the required coverage.
- Splitting coverage of operations between insurance carriers to get better rates is difficult; all or nothing approach.
How Our Rates Compare
Gymnastics PSOs across Canada are seeing insurance rate increases and trampoline restrictions for many of the same reasons Alberta has experienced. Nationwide, Gymnastics Ontario currently has the highest premiums. Even trampoline parks are feeling the impact. The maximum limit of liability that is currently available to trampoline parks is $2 million (previously $5 million) with no other markets willing to give excess coverage. In comparison, AGF has a $5 million limit through Markel Insurance with an additional $5 million top-up through Aviva ($10 million total) but this too could change by July 1, 2019.
A Closer Look at AGF Claims
- Currently, there are 11 claims listed on AGF’s primary liability. These date back to October 2012 and 7 are still open.
- The combined amount paid plus payout still expected (reserves) is equal to over $6.6 million.
- The total primary liability premium paid since 2012 is equal to over $1.1 million.
- The loss ratio over this 6-year period has been ~583%.
Across Markel, $8.6 million has been paid out in gymnastics claims since 2007. 87% ($7.2 million) were trampoline-related.
Accident Prevention is Key
AGF has always strived to maintain the highest level of coaching certification and risk management prevention. Despite these efforts, liability is typically found due to a lack of supervision, demonstration of technique and instructions, and training. Other culprits include improper equipment, failure to update protocols, and a lack of having or improperly implementing a Waiver/Notification of Risk. All it takes is one major claim, a catastrophic injury, and your club may be liable for the costs over and above what the insurer will pay. AGF cannot emphasize enough how important it is to review and asses your coaches’ certification levels to ensure they meet the insurer’s requirements and to review your public/participant safety and emergency plans during training, classes and events at your gym.
AGF will continue to provide updates about upcoming changes to insurance as we learn more. A webinar is scheduled for Wednesday, April 24, 2019, from 12:30 p.m. to 1:00 p.m. and will provide an opportunity for Q & A with AGF staff and Toole Peet. Members are also encouraged to visit the AGF website which contains more detailed information about AGF insurance coverage, premiums and more: abgym.ab.ca/Membership/Insurance.