As we head into the summer months, the insurance market for the sports and recreation industries is stable, with submissions up, capacity plentiful and pricing remaining constant. For those who know this specialized niche, these trends should be no surprise.

With just about a half-dozen excess and surplus lines companies writing most of the sports and recreation risks, this niche tends to be more stable and avoids some of the more dramatic price and capacity swings seen in the general market. While a few carriers that just began writing this business during the soft market are likely to exit quickly once the market tightens, we expect capacity to remain stable.

What makes this insurance market unique is the specialized underwriting needed to succeed in it. Whether the risk is guided recreation, commercial equine, special events, amusements, recreational equipment rentals or other exposures, this is not a market for the meek. For insurers that do not understand these unique risks, and do not maintain consistent underwriting standards, the market could bite them.