That’s crazy news.
To be honest, from an insurance point of view, this must be a very complicated thing to insure…
Sadly insurers’ appetites are getting tighter, which means costs go up which means that sport that doesn’t cut it in terms of sponsorships, endorsements, ticketing and media coverage will not make it…
Let’s hope things change…
Always remember, the business of Insurance companies is not to provide insurance, but to provide profit for shareholders.
Hm that’s like saying the purpose of motor racing is not to provide a spectacle to fans but a return to organisers…
No it’s not.
Ok, in the sense that organisers may not be a plc that is accountable to shareholders that’s true.
But in the sense that both seek to make a profit, it is. The difference here is scale and the investment behind it. Having said that, looking at motorcycling Ireland statement and website I wonder how professional this is… Maybe I was wrong.
I’m not saying either of this is fair / right or whatever. But, having worked for an insurer of complex risks, these are never easy to quote. And these insurers are likely behind more than just motor racing… So complex events (floods, fires etc), can wipe out their books.
Don’t get me wrong, they will charge whatever they can get away with and in a market where there are limited options, that’s what they’ll do. Again, unethical yes but all I’m saying is not to elevate motorcycling orgs to some holier status… If they could get away with charging higher entry etc to people and teams and maintain interest, they would.
Difference is with the profits from the bike racing, they go into the promotion and setup for the next year’s event.
That’s the purpose of any for-profit business.
They exist to make themselves a profit, not to provide a service (regardless of what their PR department say). This is how capitalism works.
The insurance companies have decided they can’t make (enough) money selling the insurance for these races, so are not offering it (or have charged a higher price, I’ve not looked to see which it is).
It’s the same as Tesco rasing prices/stopping selling sandwiches because the profit margin is too small/non-existent.
