1 Global Sports Insurance Market Insight Analysis
The global sports insurance market is valued at USD 3,982.82 million in 2024, with a CAGR of approximately 5.5% from 2024 to 2033.
Sports insurance is a specialized type of coverage designed to protect individuals and organizations involved in sports activities from financial losses due to injuries, liability claims, and other risks associated with sports events. It encompasses various types of insurance, including accident insurance, general liability insurance, directors and officer’s liability insurance, and others. This comprehensive coverage is essential for managing risks in a sector that is both highly competitive and prone to uncertainties.
Figure Global Sports Insurance Market Size (M USD) and CAGR (2024-2033)
2 Sports Insurance Market Growth Drivers and Restraints
The primary factor driving market growth is the booming sports industry. In recent years, the scale of the global sports industry has continued to expand, with revenue approaching $487 billion in 2022 and expected to exceed $623 billion by 2027. From clubs and event operations to sports equipment manufacturing and media broadcasting, all aspects of the sports industry are growing.
International major events such as the Olympics and the World Cup not only attract global attention, but also bring huge commercial value, which has led to a sharp increase in the demand for risk protection by sports stakeholders. At the same time, the national fitness craze has emerged, the number of people participating in sports activities has continued to rise, and the sports scenes have become increasingly rich. From traditional sports to emerging extreme sports, there are hidden risks, which has led to a simultaneous increase in the demand for sports insurance.
Secondly, the importance of sports insurance itself has become increasingly prominent. In sports events, risks such as athlete injuries, equipment damage, and legal disputes occur frequently, which may cause sports organizations and athletes to face huge economic losses. Taking professional athletes as an example, injuries may interrupt their careers and sharply reduce their incomes, and sports insurance can provide them with financial compensation to protect their lives and subsequent development.
For sports organizations, insurance can effectively deal with risks such as litigation compensation and maintain the normal operation of the organization. In addition, sports insurance can also serve as a powerful tool for recruiting athletes, attracting talents for sports clubs and organizations, and helping them to develop stably in the long term.
However, market growth also faces many limiting factors. Among them, high insurance costs are a major obstacle. When setting premiums, insurance companies need to consider a variety of factors, such as the risk level of the sport, the insurance period, the age of the insured, the insurance limit, and the insured entity. For some high-risk sports, the insurance costs are often higher; and the insurance costs for children are usually higher than those for adults. In addition, sports organizations require a wide variety of insurances, covering accidents, liabilities, directors and senior management liabilities, etc., which further increases the insurance costs. The high insurance costs have discouraged some sports organizations and individuals, limiting the further expansion of the market.
In developing countries, weak insurance awareness and talent shortages also restrict the development of the market. In developed countries such as Europe and the United States, sports insurance is deeply rooted in the hearts of the people, and athletes and sports organizations generally attach importance to insurance. However, in many developing countries, relevant laws and regulations are imperfect, the sports insurance market is lagging behind, people’s understanding of sports insurance is insufficient, and insurance awareness is weak.
At the same time, sports insurance is highly professional and requires compound talents who understand sports and are familiar with insurance, law, finance and other knowledge. However, there is currently a shortage of such talents, which makes it difficult to improve the service quality and efficiency of the sports insurance market and unable to meet market demand.
3 Technological Innovations in the Sports Insurance Market
Technological innovation has injected new vitality into the sports insurance market. With the rapid development of emerging technologies such as the Internet, big data, cloud computing, and artificial intelligence, their applications in the field of sports insurance are becoming increasingly widespread. With the help of data analytics tools, insurance companies can deeply mine and analyze claim data, accurately identify risk patterns and trends, and more accurately assess risks and price insurance products, thereby improving the transparency and accuracy of insurance business.
For example, by analyzing athletes’ past injury data, game types and other information, personalized insurance plans can be formulated for different athletes. At the same time, modern technology has promoted the establishment of a unified information platform, realized data sharing and business collaboration between insurance companies, policyholders, and suppliers, greatly reduced transaction costs, and improved operational efficiency. In addition, the application of technologies such as smart contracts, identity management, and data standards has effectively prevented insurance fraud and ensured the healthy development of the market.
In the field of sports, the application of GPS technology and wearable devices can monitor athletes’ physical condition and sports data in real time, prevent sports injuries in advance, and provide more accurate basis for insurance claims; and the development of telemedicine technology enables athletes to obtain medical services more conveniently, accelerate the rehabilitation process, and reduce medical costs, all of which provide new opportunities for the expansion of sports insurance business.
Mergers and acquisitions are also important features of market development. In recent years, the sports insurance market has seen frequent mergers and acquisitions, with many companies expanding their market share and improving their competitiveness through mergers and acquisitions. For example, Miller’s acquisition of Henner Sports further consolidates its leading position in the sports insurance market. As France’s leading sports insurance broker, Henner Sports has abundant customer resources and a professional service team. The acquisition enables Miller to expand its business scope and provide services to more professional athletes and sports organizations. BMS acquired Eisenar.
With Eisenar’s expertise in professional sports insurance, especially its partnership with well-known clients such as Sevilla Football Club, BMS successfully expanded its market share in the Iberian region and enhanced its influence in the sports insurance market. Howden has continuously improved its layout in the sports and entertainment insurance market and enhanced its comprehensive service capabilities in this field through a series of acquisitions, such as Media Insurance Brokers International Limited, Franz Gossler Insurance Group, Assimovie and Wallace McLean, and has gradually become a market leader.
4 Global Sports Insurance Market Size by Type
Accident Insurance: This segment is projected to generate significant revenue due to the high demand for coverage against injuries sustained during sports activities. In 2024, it is expected to reach $2,541.01 million. Accident insurance is essential for both professional and amateur athletes, as well as for sports organizations, to mitigate the financial impact of unexpected injuries.
General Liability Insurance: This type of insurance protects sports organizations from legal claims arising from accidents or injuries. In 2024, the market for general liability insurance in sports is forecasted to reach $637.00 million. It is a crucial component of sports insurance, especially for large-scale events and professional sports leagues.
Directors and Officers Liability Insurance: This segment provides coverage for legal claims against directors and officers of sports organizations. In 2024, it is expected to generate $453.51 million. This type of insurance is particularly important for high-profile sports organizations and leagues where the risk of litigation is higher.
Table Global Sports Insurance Market Size by Type in 2024
Type | Market Size (M USD) 2024 |
|---|---|
Accident Insurance | 2541.01 |
General Liability Insurance | 637.00 |
Directors and Officers Liability Insurance | 453.51 |
Others | 351.30 |
5 Global Sports Insurance Market Size by Application
Children and Students Below 19 Years: In 2024, the revenue for sports insurance catering to children and students below 19 years is estimated to be $718.52 million. This segment has been growing steadily as parents are becoming more aware of the potential risks their children face while participating in sports activities. For example, in many schools and community sports programs, insurance is a prerequisite for students to participate.
This not only protects the students from financial losses in case of injuries but also safeguards the schools and organizers from potential liability claims. The growth in this segment can also be attributed to the increasing popularity of youth sports, with more children taking part in a wide range of sports such as soccer, basketball, and swimming.
Professional Sportsperson/Team: The professional sportsperson/team segment is expected to generate a revenue of $2767.80 million in 2024. Professional athletes and sports teams face significant risks, including career – ending injuries, property damage, and liability issues. Insurance for this segment is crucial as it can cover medical expenses, loss of income due to injury, and legal costs.
For instance, a star athlete’s injury can result in substantial financial losses for the team in terms of performance and sponsorships. Sports insurance provides a safety net, ensuring that both athletes and teams can manage these risks effectively. The continuous growth of professional sports globally, with increasing investments in sports infrastructure, sponsorships, and broadcasting rights, has also contributed to the growth of this segment.
Amateur Sports Teams: The revenue for amateur sports teams in 2024 is projected to be $310.48 million. Amateur sports organizations play a vital role in promoting sports at the grassroots level. However, they also face risks such as participant injuries and property damage during games and practices. Sports insurance for amateur teams helps cover these potential losses. With the growing number of amateur sports events and the increasing professionalism in amateur sports, the demand for insurance in this segment has been on the rise. For example, local soccer leagues, running clubs, and tennis associations all require insurance to protect their members and the organization itself.
Table Global Sports Insurance Market Size by Application in 2024
Application | Market Size (M USD) 2024 |
|---|---|
Children and Students Below 19 Years | 718.52 |
Professional Sportsperson/Team | 2767.80 |
Amateur Sports Teams | 310.48 |
Others | 186.02 |
6 Global Sports Insurance Market Size by Region
North America: In 2024, the sports insurance market revenue in North America is forecasted to be $1693.50 million. The United States, being a major contributor, accounts for a significant portion of this revenue. The sports industry in North America is highly developed, with popular professional sports leagues like the NFL, NBA, and MLB. These leagues, along with a large number of college and high – school sports programs, drive the demand for sports insurance.
The high level of sports participation, both professionally and at the amateur level, and the well – developed insurance market infrastructure contributes to the region’s strong market performance. Additionally, the increasing awareness of risk management among sports organizations and athletes has led to a growing demand for comprehensive insurance coverage.
Europe: Europe’s sports insurance market is expected to generate a revenue of $1225.03 million in 2024. Countries like Germany, the UK, and France are key markets in the region. Germany has a strong sports culture, with a large number of sports clubs and events, which creates a high demand for sports insurance. The UK, known for its football Premier League and other major sports events, also contributes significantly to the market revenue.
The European market benefits from a well – established sports infrastructure, a high level of sports enthusiasm among the population, and strict regulations regarding sports safety and insurance. However, the market also faces challenges such as the impact of regional conflicts on insurance costs and the need for more customized insurance products to meet the diverse needs of different sports and regions.
Asia Pacific: The Asia Pacific region’s sports insurance market is projected to reach a revenue of $774.76 million in 2024. China, with its large population and rapidly growing sports industry, is a major growth driver. The Chinese government’s initiatives to promote sports participation, such as building more sports facilities and hosting international sports events, have led to an increase in the demand for sports insurance.
Japan and South Korea also have significant sports markets, with a high level of sports participation and a growing awareness of insurance. In addition, the emerging economies in Southeast Asia and India are showing great potential. India, with its large youth population and increasing interest in sports, is expected to witness significant growth in the sports insurance market in the coming years.
Latin America: Latin America’s sports insurance market is expected to have a revenue of $167.34 million in 2024. Brazil, Mexico, and Argentina are the major markets in the region. Brazil, with its passion for soccer and other sports, has a relatively large sports insurance market. The growth in the region is driven by the increasing popularity of sports, the development of sports infrastructure, and the growing awareness of insurance benefits. However, the market also faces challenges such as economic instability in some countries, which can affect the affordability of insurance for sports organizations and individuals.
Middle East & Africa: The sports insurance market in the Middle East & Africa is forecasted to generate a revenue of $122.19 million in 2024. Saudi Arabia and the UAE are leading the market in the region. These countries have been investing heavily in sports infrastructure and hosting international sports events, which has increased the demand for sports insurance. In addition, South Africa also has a significant sports insurance market, mainly due to its well – developed sports culture. However, the region also faces challenges such as political instability in some areas, which can disrupt the sports industry and affect the insurance market.
Figure Global Sports Insurance Market Size (M USD) by Region in 2024
7 Global Sports Insurance Market Analysis by Major Players
Allianz
Company Introduction and Business Overview:
Allianz SE is a multinational financial services company headquartered in Munich, Germany. Established in 1890, it is one of the world’s largest insurance and asset management companies.
Allianz offers a wide range of insurance products, including life, health, property, and casualty insurance. In the sports insurance segment, Allianz provides comprehensive coverage for professional sports events, athletes, and sports organizations. It is known for insuring high-profile events such as the FIFA World Cup.
Products:
Allianz’s sports insurance products cover accidental injuries, general liability, directors and officer’s liability, and event cancellation insurance. They also offer specialized coverage for sports-related risks, including medical expenses, equipment damage, and legal liabilities.
MetLife
Company Introduction and Business Overview:
MetLife, Inc. is a leading global provider of insurance, annuities, and employee benefit programs. Founded in 1868, it operates in over 50 countries and serves millions of customers worldwide.
MetLife’s sports insurance business focuses on providing protection for sports organizations, teams, and individual athletes. It offers a variety of insurance solutions tailored to the unique risks associated with sports activities, including liability and accident coverage.
Products:
MetLife’s sports insurance portfolio includes general liability insurance, accident insurance, and specialized coverage for sports-related injuries and property damage. They also provide insurance for sports events and tournaments, ensuring financial protection against unforeseen incidents.
Aviva
Company Introduction and Business Overview:
Aviva plc is a multinational insurance company based in the United Kingdom. Established in 1696, it is one of the oldest and largest insurance companies globally, with operations in the UK, Ireland, Canada, and other international markets.
Aviva offers a comprehensive range of insurance products, including life, health, and property insurance. In the sports insurance segment, Aviva provides coverage for amateur and professional sports organizations, focusing on risk management and financial protection.
Products:
Aviva’s sports insurance products cover accidental injuries, general liability, and specialized coverage for sports-related risks. They also offer insurance for sports events, ensuring protection against potential liabilities and financial losses.