Legacy 2016
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Legacy 2016

Biggest movers

It's not often that the glitz of the film industry crosses with the glamour of the legacy market.

However, the release of a Will Smith film at Christmas could have serious implications for run-off carriers.

In Concussion Smith acts out the real-life story of neurologist Dr Bennet Omalu, who was the first person to diagnose chronic traumatic encephalopathy (CTE) in a professional American football player.

The diagnosis of the impact-related medical condition proved that the player's untimely death was directly linked to his football career, in the face of significant pushback from the US National Football League (NFL).

A string of lawsuits ensued, including one high-profile class action brought against the NFL. These suits have been a significant worry for employers' liability carriers, which could be left to foot the bill.

Thousands of former NFL players filed a class action suit against the league in 2012, claiming that it concealed the long-term effects of concussions sustained by its players and failed to properly warn them about the dangers of repeated head trauma.

And in July 2014, a Philadelphia District Court approved an uncapped settlement to compensate former players for injuries sustained, which could lead to claims exceeding $1bn.

It is thought Smith's movie could affect public perception of CTE and influence juries in future court decisions.

An increase in sport-related injury claims, once a distant prospect on the horizon, is coming ever clearer into view.

In this year's Insurance Insider Legacy Barometer, respondents highlighted sports head injuries as one of the top three emerging claims, alongside sexual abuse and cyber liability. In contrast, this time last year sports-related injury claims were a throwaway topic amid increasing concerns about industrial deafness and asbestos-related claims, as the UK employers' liability market geared up for a mammoth £6bn ($8.7bn) sell-off of liabilities.

However, the NFL decision is bound to ring warning bells in the UK. Legal action surrounding sports head injuries is unheard of in the UK, although the dangers of concussion have recently been brought to light following a number of high-profile cases in international rugby union. Jonathan Thomas, a forward for the Welsh national team, announced his retirement from the sport in September last year after he was diagnosed with epilepsy. It is thought that his epilepsy is a result of sustaining multiple head traumas during his rugby career.

This followed an incident earlier that year with Wales winger George North, who sustained two separate blows to the head in a Six Nations game against England. The Welsh medical staff came under fire for allowing him to play on after his first head trauma.

Law firm Clyde & Co has previously said that the number of head injuries among 14- to 18-year-old rugby union players increased by 41 percent between the 2012 and 2013 seasons - a worrying statistic as awareness of the consequences of head trauma grows.

CTE and sports-related injuries have been dubbed "the next asbestos" by US law firms.

And with legacy carriers still paying out for mesothelioma, perhaps it's fair to say sports head injury claims could cause more than a headache on both sides of the Atlantic.

To view the 2016 legacy survey please click here

Catrin Shi,

Editor, legacy

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