The Impact of Zurich’s Decision on AFL and AFLW Players
A recent decision by a leading insurance provider has significantly affected the availability of brain injury insurance for Australian Football League (AFL) and AFL Women’s (AFLW) players. In March, Zurich Australia announced that it would exclude concussion and head trauma from the total and permanent disablement (TPD) insurance policies held by professional players as part of the AFL Players Association superannuation fund, which is managed by AMP.
This change means that no TPD benefits will be paid out for football-related brain injuries, including concussions and chronic traumatic encephalopathy (CTE). The new policy comes into effect on May 1, raising concerns about the financial security of athletes who suffer long-term cognitive impairments due to their careers.
A Growing Risk Landscape
Zurich has stated that it is the only insurer offering this type of coverage to AFL and AFLW players, reflecting a broader trend among insurers to reduce their exposure to high-risk sports. Media reports suggest that Zurich is concerned about the increasing number of claims it has had to pay since it began offering coverage in 2020, with several seven-figure payouts to athletes.
Another factor cited by Zurich is the high level of uncertainty surrounding brain injuries and the need to limit liability for high-contact sports. This move highlights a growing challenge in the insurance industry: how to manage the risks associated with repeated head trauma in contact sports.
Differing Approaches Across Sports Leagues
Unlike AFL players, NRL players do not have access to a single default insurance arrangement. Instead, the National Rugby League (NRL) and its players association have two funds: a “past player medical support fund” and the “player hardship fund.” However, there is limited publicly available information about the nature and scope of these funds.
Most professional athletes in Australia are excluded from state-based workers’ compensation schemes such as WorkCover, which provide no-fault insurance for job-related injuries. This exclusion was a key focus of a 2023 Senate inquiry into concussions and repeated head trauma in contact sports.
From May 1, unless an AFL or AFLW player has their own private TPD insurance, they will need to rely on the league and its players association for support. The AFL, through its players association, offers a “severe injury benefit” that provides up to $600,000 in financial support to eligible players who suffer cognitive impairment due to their playing career. However, this capped payment is not comparable to the previous level of financial security provided by Zurich.
Limited Options and Concerns
There are also concerns about the discretionary nature of these private schemes and whether the funding available is sufficient to cover the number and amount of claims. For now, privately funded arrangements like the AFL’s serve as a stopgap solution. More sustainable solutions are needed to ensure the long-term protection of athletes.
Comparing Models Around the World
How countries handle the long-term impact of head injuries varies significantly. A useful comparison can be found in the three rugby heartlands of the southern hemisphere: Australia, New Zealand, and South Africa.
In Australia, registered rugby players at all levels are covered by a national risk management and insurance program. However, this insurance does not cover long-term head injury risks. Instead, future costs tend to fall on a mix of private insurance, public health systems, and increasingly, the courts. Litigation related to concussion and head trauma is rising, and insurers view this as an accelerating legal risk.
New Zealand takes a fundamentally different approach. Through its no-fault Accident Compensation Corporation, head injuries are treated as a publicly pooled social risk, with automatic and universal coverage. This system works alongside SportSmart, a national injury prevention program developed by academics, clinicians, and sporting organisations.
South Africa sits somewhere between these models. While it does not rely on a public insurer, it operates in partnership with a private insurer and incorporates BokSmart, a national safety program that mandates education, enforces evidence-based laws, and applies strict return-to-play protocols across all levels.
The Need for Stronger Partnerships
While a lack of TPD insurance does not directly threaten the viability of sports, Zurich’s decision highlights the need for alternative solutions to protect athletes. Better partnerships between sporting organisations, insurers, and governments could create opportunities to improve how head injury risk is understood.
By pooling more injury surveillance data, stakeholders could gain a clearer picture of long-term exposure and emerging trends. This would support better decisions about preventing harm, designing policy, and managing risks. This approach will likely be most effective if it extends down to community and junior sport.
Concussion and Head Injuries in Youth Sports
Concussion and head injuries often first occur in youth participation, and early mismanagement can increase the risk of long-term health consequences. This makes it essential to address head injury risks at all levels of sport.
A Serious Concern
The Zurich decision only impacts the specific TPD cover of elite AFL and AFLW players. However, any decision to reduce or exclude sport-related concussion cover could lead other insurers to review their coverage, including community or junior sport insurances. This will be a serious concern, as the Insurance Council of Australia warned in its 2023 submission to the Senate inquiry: “no insurance means no sport.”
