The Fédération Internationale de l’Automobile (FIA) has announced the creation of a dedicated Motorsport Insurance Task Force, aiming to tackle the growing issue of rising insurance costs within the motor racing industry. FIA President Mohammed Ben Sulayem revealed that the task force will be led by Secretary Generals Valerio Iachizzi, responsible for Sport, and Willem Groenewald, who oversees Mobility and Sustainability. The initiative comes as motor sport faces an environment where insurance premiums are increasing rapidly, coverage is becoming more restricted, and insurers are less willing to underwrite risks associated with high-severity racing events.
Ben Sulayem emphasized the importance of supporting FIA members, stating, “Rising insurance costs risk limiting opportunities and undermining accessibility across the world. To address this, we must work hand in hand with our Clubs, insurers, and local authorities to deliver solutions that keep our sport safe, fair, and sustainable for all.” The task force is expected to present an interim report at the FIA’s annual assembly in Tashkent later this year.
While the FIA’s initiative directly targets issues in racing, it also highlights challenges faced by mainstream motor insurers in other markets. In Canada, for example, passenger vehicle insurance premiums have climbed nearly 10 percent in 2024. Claims ratios have exceeded 90 percent by the third quarter, and theft claims alone surpassed $1.5 billion in 2023. Additionally, repair costs—including parts and labor—have risen by over 20 percent since 2019. These trends illustrate how factors like complex technology, potential for catastrophic losses, and regulatory scrutiny are putting pressure on insurance markets beyond motorsport.
Lessons for Canadian Motor Insurers and Global Implications
The FIA’s intervention may serve as a useful benchmark for Canadian underwriters and brokers who deal with high-risk activities. If the task force can establish clearer metrics for affordability, claims management, or loss prevention within motorsport insurance, these findings could help guide broader efforts to manage costs in Canada’s regulated provincial markets.
Willem Groenewald pointed out that the FIA’s experience with mobility can be applied to both motorsport and general transport policy. He stressed that affordability and consumer protection remain central concerns. For Canadian insurers operating under strict provincial regulations on rate filings, collaboration with regulators is key to finding comprehensive solutions rather than relying on temporary fixes.
Although the new task force may not offer immediate relief to those affected by rising premiums, its creation signals a recognition that active engagement from insurers and policymakers is necessary to preserve access and participation in motor racing worldwide. The situation also serves as a reminder for Canadian insurers: inflation in auto insurance is a global issue and not limited to local markets.
As both motorsport and everyday driving face similar pressures from technological complexity and loss risks, the sustainability of motor risk transfer increasingly depends on global coordination, innovation in product design, and disciplined underwriting practices. The FIA’s approach encourages insurers everywhere to look beyond their borders for solutions that keep insurance affordable and accessible.
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