I get a little newsletter called Racing Promotion Monthly. Although aimed
primarily at the circle-track world, it often contains thought-provoking
comment applicable to any motorsport. RPM conducts workshops around the
nation where promoters gather to discuss this business side of racing. Their
issues are not exclusive to the roundy-rounders. Here's one, from RPM's
February issue, with which SCCA club racing and solo II can identify:
"Based on hallway conversation at the recent Workshops, promoters would be
well advised to redouble their effort at protecting their insurance,
following carefully any guidelines issued by their agencies.
"Racing is still a trickle-down victim of a hard worldwide insurance market.
Carriers in all lines of insurance, especially high-risk lines such as
racing, are looking to limit risks and curtail losses. When insurance
company middle managers look at their risks they have no concern for racing,
focusing entirely on their bottom line.
"Racing is just business to them, no more. Premium increases, though an
unpleasant fact, have not generally been higher than increases in the
greater insurance market. More important to promoters than premium cost is
insurance availability. Though racing's insurance agents are understandably
reluctant to comment about it, we hear they face significant reluctance
among their markets (the companies whose policies they sell).
"Future availability of racing policies without high cost and considerable
underwriting strings attached is no way a sure thing, and will be determined
by future events. There are even whispers that some present markets may
leave racing, and no one is certain where replacements will come from. As
long as there are no other significant losses, in racing or elsewhere,
racing may squeak by with the simple inconvenience of increased premiums,
but should cataclysmic events create an upheaval in the insurance market, or
big racing related losses occur, all bets could be off.
"Agencies play down the prospect of problems similar to 1984, when racing
was left with one insurer and strict underwriting - an environment where
some tracks could not get insurance, but we wonder if circumstances such as
that might not follow any future upheaval in the insurance business.
Australian tracks are still dealing with the aftereffects of just such a
crisis.
"As racing begins this year, pay particular attention to risk management and
assure that employees are trained in proper waiver and release procedures.
"Racing cannot afford to joke about uptight insurers as it did when coverage
was plentiful. It's time to pay attention!"
I recall attending my first Solo II Safety Steward school many years ago,
and the instructor (Marc Gerstein, I think) telling us our primary purpose
was to "protect the insurance." Race or solo (rally too), that
responsibility is just as important today.
--Rocky Entriken
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