Liability premiums for sporting clubs and associations may drop in the next year, according to two leading industry sources.

Peter Nash, leading sports insurance specialist and Sportscover CEO, says changes to the sports insurance market will probably see premiums fall.

“It’s safe to say consumers won’t be paying the kind of liability increases they have in the past,” he says. “Part of this is due to legislative changes, which have introduced a level playing field.”

But Mr Nash is sceptical of the quality of new players entering the sports insurance field and their ability to offer cheaper premiums. “The industry is seeing some insurers rushing into areas they may not have experience or expertise in and offering policies at a price that may not be sustainable,” he said.

“Some members of the industry probably haven’t learned all the lessons arising from the HIH collapse.”

The news of a softening sports insurance market comes as a leading sporting association, Basketball Australia, announces it has thrown out its state-based personal accident and liability policies and entered into a national policy.

CEO Scott Derwin says it will allow the association’s 470-plus affiliated local basketball associations to access affordable cover, while enabling the association to introduce better planning and risk management.

Basketball Australia’s insurance broker, Sydney-based Horsell International, says many national sporting associations are finding it a lot more affordable to seek national cover.

Executive Director Rob Veale told Sunrise Exchange News: “Australia is seeing more players in the marketplace that are keener to write more business. More competition, along with tort reform, has had a positive benefit in driving down costs.”