A Sense of Adventure.Californian Hans Lehmann is a husband, father and homeowner in his 40s who works as an electrical engineer. About 15 years ago, he wanted more excitement in his life, so he took up rock climbing rock climbing Sports medicine An 'extreme sport' in which the participant climbs rock formations, with or without ropes Injury risk Fractures, abrasions, death. See Extreme sports. . Lehmann is not alone. Each year, the urge to experience the adrenaline rush of such extreme sports extreme sports Sports events characterized by high speed or high risk. Such sports include aggressive inline skating, wakeboarding, street luge, skateboarding, and freestyle bicycle events (wherein tricks such as back flips are performed on a bicycle). as BASE jumping BASE jumping Sports medicine An extreme sport in which participants jump–with parachute-from 4 types of structures that constitute the acronym: Buildings, Antennas, Spans–bridges, Earth–cliffs , paragliding and snowboarding attracts more participants. Insurers are taking note. When an applicant reveals that he or she spends weekends scuba diving scuba diving Swimming done underwater with a self-contained underwater-breathing apparatus (scuba), as opposed to skin diving, which requires only a snorkel, goggles, and flippers. Scuba gear was invented by Jacques-Yves Cousteau and Émile Gagnan in 1943. or mountain climbing mountain climbing, the practice of climbing to elevated points for sport, pleasure, or research. Also called mountaineering, it is practiced throughout the world. Types There are three types of mountain climbing. , life and disability underwriters ask more penetrating questions. Commercial liability underwriters are more carefully screening the risk-management practices of the businesses that provide the thrills. Several insurers have developed specialties in underwriting these risks, which are the subject of this month's cover package, "Extreme Risks" (page 28). For example, Frontier Insurance Co., Rock Hill, N.Y., is willing to take on higher-risk sports purveyors. Typically, Frontier writes $1 million limits for its outdoor recreation activities and has found that most injury claims resulting from these sports can easily be settled for less. This month's edition also examines property/casualty reinsurance The contract made between an insurance company and a third party to protect the insurance company from losses. The contract provides for the third party to pay for the loss sustained by the insurance company when the company makes a payment on the original contract. from three perspectives: * Nontraditional growth: Munich Reinsurance Corp., the world's largest reinsurer re·in·sure tr.v. re·in·sured, re·in·sur·ing, re·in·sures To insure again, especially by transferring all or part of the risk in a contract to a new contract with another insurance company. , is the subject of "Taking Strides," page 60. Munich Re has grown in the long-running soft market by building its direct property/casualty, life and health insurance businesses. It has also turned its asset-management expertise into a marketable service. * Renewal rates: The latest round of reinsurance renewals may have halted four years of declining prices, with some tentative rate hikes in many lines. While it's too early to tell if the hard market has returned, several London underwriters believe the bottom of the cycle has passed ("Silver Lining Shines Through," page 65). * Unconventional alliances: One tool that midsize property catastrophe insurers can use to develop a geographically diverse portfolio of risks is index-based reinsurance pools ("Banding Together," page 71). This issue also marks the first of several articles by A.M. Best Co. President and Chairman Arthur Snyder that examine the historical development of the insurance industry ("Sailing on a Rising Tide," page 41). Marilyn Ostermiller is executive editor. |
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