Footing the Bill
Fractured metatarsal bones have cost insurers significant amounts over the last few years. In the last four years seven England players in the national football team have fractured their metatarsal bones, the most high profile being David Beckham before the last World Cup and most recently Michael Owen and Wayne Rooney. With a number of the top stars earning six figure weekly salaries the cost of these key players being out injured is high. Who foots the bill? Ultimately it is the clubs that pay a player's wage and having their star players out injured is extremely costly. For the clubs that purchase wageroll protection cover (otherwise known as temporary total disablement cover) it is the insurers that pick up the final tab.
With career threatening injuries becoming less common with the advancement in medical technology and excellent physio and rehabilitation facilities, clubs are moving more and more towards protecting the cost of their players injured on a temporary basis
Wageroll protection cover is increasingly being purchased by Europe's top football clubs. With career threatening injuries becoming less common with the advancement in medical technology and excellent physio and rehabilitation facilities, clubs are moving more and more towards protecting the cost of their players injured on a temporary basis. We have recently seen a high number of temporary injuries, particularly metatarsal injuries, which on average take between six and eight weeks to heal. If a top Premiership football player returns to full fitness within the eight week period you are looking at a minimum £500,000 loss to insurers for each player injured. Several players out injured for an eight week period could lead to multi million pound payouts.
Putting the boot in
The shaft of the fifth metatarsal, joining the little toe, on the outer border of the foot is most commonly injured. Common causes of fracture include accidentally kicking the sole of an opponent's boot or by stepping on an opponent's foot as well as any other sudden impact. Overuse can also cause stress fractures of the metatarsals.
We are monitoring the frequency of these injuries very closely as well as the causes. We are seeing more injuries but players are returning to full match fitness faster. For example, six or seven years ago it was likely that a player that suffered an Anterior Cruciate ligament rupture might not play top level football again. If the injury was not career threatening the player could well be out injured for over a year. The same injury will now keep a player out of action for between six and nine months thanks to the advanced medical treatment available from surgeons such as Dr Richard Steadman in Colorado and Dr Hans-Wilhelm Muller-Wohlfahrt in Munich. Muller-Wohlfahrt has treated athletes such as Paula Radcliffe, José Maria Olazabal, Boris Becker, Darren Gough and Michael Owen. Steadman has treated a number of stars inlcuding Joe Montana, John Elway, Bode Miller and the knees of footballers including Alan Shearer and Ronaldo. Michael Owen has turned to Steadman following his world cup knee ligament injury against Sweden.
Injury and premium increases
Insurance premiums are likely go up if we see the current frequency of injuries increasing. Although more clubs are buying wageroll protection cover there currently is not enough spread of business to take into account the number of injuries occurring. All it takes is a couple of top players to be out injured for four to five months and there is a significant claim in the market.
Premium rates vary between three percent and five percent of a player's annual salary depending on the age of the player, his position and his injury history. Benefit periods vary from 26 weeks to the normal 52 week payment period and in some cases the benefit is paid for up to 104 weeks. It is the norm for a time excess or monetary deductible to be applied. The time excess normally begins at 30 days increasing to 90 days for older players. A monetary deductible can be tailored to how much of the exposure the club wishes to finance itself. Insurers will profile a club's playing squad and the higher the average age of the squad the higher the premium paid. Clubs in the lower leagues are also likely to pay higher premiums as their players tend to be older and their facilities not as good. Other options are to look at insuring specific groups of players for example, a club's highest earners, midfielders or strike force.
Know the game
With the market being very small and specialist a significant claim can lead to some of the peripheral insurers pulling out from writing this class of business. It is often the case that, attracted by high rates and chunky premiums and even by some of the star names they are insuring, insurers start to write this type of business without carrying out enough due diligence. It is these insurers that leave the market as quickly as they arrived. In London there are three or four recognised lead sports disability insurers that will underwrite wageroll protection cover and another eight or nine that will write small follow lines. The majority of the available market will participate on some of the larger club and governing body placements.
The business emanates from England, Italy, Spain, France, Germany, Belgium and the Netherlands as well as from other parts of the world including South America and the Far East.