Inside Track: The Complex World Of Equine Insurance

How did you get involved in Equine Insurance? What does your job entail?

I grew up with horses, competed at an average level, and loved them deeply. We lived near a stud that bred Reference Point, the 1987 Epsom Derby Winner, and my visits there sparked a fascination with Thoroughbred pedigrees. During university, I worked at Kildangan Stud, Ireland, for three months, splitting my time between training yearlings outdoors and working in the office. I loved the experience and I realised I wanted horses in my career but not exclusively as hands-on work.

My uncle worked in the Lloyd's insurance market. His introduction to a bloodstock insurance broker led to a promising meeting, followed by an interview and a successful job offer. I've remained in bloodstock insurance ever since.

I spent seven years in broking, serving as the liaison between clients and insurers, negotiating the best possible deals covering both price and comprehensive coverage needs. After being headhunted by an insurer, I transitioned to underwriting and have stayed in this field for 26 years, working with two companies before joining Markel 16 years ago.

My current role is diverse and rewarding. I manage a team of eight in London and eleven in France, while horses remain central to daily operations. Staying updated through racing and Thoroughbred publications (now all online) is crucial to keeping pace with global Thoroughbred racing. Markel leads over 95% of what we write and maintains its respected position through consistent market awareness.

Given the increasing globalisation of equine sports, how do you manage coverage transitions when horses frequently move between different regulatory jurisdictions, particularly EEA and non-EEA territories?

This has been an ongoing issue for bloodstock insurance for many years as Thoroughbred stallions have been breeding in both the Northern and Southern Hemispheres for a long time now, travelling between the two, so we have learnt how to underwrite and manage the risk at the inception of the policy. As long as we know the travel plans and locations of the horses, we can factor this into the pricing and territory from the beginning. Regarding the regulatory location, Markel has an entity for EEA and non-EEA locations, which means we are also able to manage that at inception and select the right entity for the risk in question.

Can you shed light on the different types of insurance that come into play during a horse's lifetime, from in-vitro to retirement, second career, stallion/mare duties, or death?

The main coverage offered by equine/bloodstock insurers is ‘all risks of mortality’ (ARM), covering death from covered perils such as fatal colic, accidents, or necessary humane euthanasia. ARM doesn't cover economic euthanasia, and owners must attempt to save the horse as per policy requirements, even if it can't resume previous activities. ARM isn't a loss-of-use coverage.

Additional coverage includes 'prospective foal' coverage, protecting foals in utero from 42 days to post-birth. Due to high risk and potential adverse selection, premiums are typically high. ‘Total and permanent infertility’ coverage for stallions covers the complete inability to serve/impregnate mares due to covered events during the policy period. This common coverage in valuable stallion policies requires a clear explanation to clients, as it only applies to permanent, complete infertility, not age-related decline.

Loss-of-use coverage, available for sport horses, covers visible accidental injuries or illness, paying a percentage of the horse's value. Upon claims, the horse typically becomes the insurer’s property, which owners must consider carefully, given breeding potential. Brokers must thoroughly explain terms to clients. Coverage extends to most equine activities, from showjumping, dressage and eventing to racing in certain territories, for horses throughout their life, depending on the appetite of the individual insurer, with age-based premium increases.

In cases where horses have multiple residencies throughout the year for training and competition, how do you determine the primary territory for regulatory and tax purposes?

We refer to Lloyd’s regulatory advice via their Crystal system.

Does this apply to the Middle East countries as well?

It does, although, in the Middle East it isn’t possible to write “direct” insurance from London; it needs to be written as a reinsurance of a local carrier. In the Middle East, there are very few to no local insurers with equine knowledge. Hence, it’s likely they would retain very little of the risk, relying on the London market expertise to assist them with writing the risk(s).

Could you describe the unique skill set required for underwriters specialising in international equine risks - particularly their blend of insurance expertise and horse industry knowledge?

In order to provide the right coverage solutions for policyholders, it is key for insureds, in my opinion, to trust that the people and company they are buying a policy from fully understand and have a passion for all aspects of horses and the equine industry, while also being an insurance expert in this field.

Other important skill sets needed to thrive as an equine underwriter include having a good understanding of equine veterinary terminology and the physiology of the horse, which our underwriters are well-versed in at Markel.

Where do you find such matches made in heaven?

Funnily enough, it’s not that difficult – quite a few people, like me all those years ago, love horses. Horses are their passion, but they don’t want to work hands-on and would rather use their equine knowledge and skills in the business environment. We are regularly contacted by people wanting to start a career in bloodstock insurance.

During pre-insurance evaluations, what factors beyond veterinary examinations are considered when assessing competition horses that train and compete internationally?

A horse requires a health exam before we can go on risk – either a cert performed by a vet if the horse is a new purchase or a declaration of health (DOH) signed by the insured or their trainer for a horse that has been owned for a while. A DOH provides some longer-term history of the horse's health over time, which is useful to insurers in helping to underwrite the risk effectively for the customer. Insurers would request loss records for insureds, regardless of whether they have previously bought insurance or not, as this can give an idea of risk.

The person who manages and looks after the horse is even more crucial than the horse itself, as good care is so important to that horse's ongoing health and well-being.

In many cases, this is all paperwork, and only recently have some portions of the work been digitised. How would an insurer make it easy for the guardians of the horses?

The equine insurance industry is not yet where we’d like it to be. We do need to continue to make things easier for our customers. As most insurers in the London market access business via wholesale brokers in London, we see this as not just an insurer issue. Brokers should be driving this as they have a relationship with the customer and more direct access to the information firsthand before sending it to insurers. It is something our market as a whole need to work on.

Considering the unique climate challenges and potential stress factors during transit, could you explain how bloodstock insurers assess and price coverage for high-value horses transported to the Middle East?

In this field of insurance, things evolve quickly with horses, and we are continually learning about new medicines, surgeries, improved transport methods, management, and farriery, among other developments. At Markel, we are keeping abreast of these areas in all the major equine global locations, the Middle East being one of them. Everything is factored into our pricing and underwriting.

What specific travel-related exclusions should owners be particularly aware of when moving horses between international competition venues?

These would be dealt with on a case-by-case basis.

Considering varying values and risk levels, how do you structure coverage for teams travelling with multiple horses to international championships?

We generally don’t as “teams” are not insureds or owners of horses. The individual owners are the insureds, so in our experience, they tend to buy their own policies. We would, of course, consider aggregations of horse values on one flight, which could cause us an issue with large exposures – meaning we might have to consider purchasing reinsurance to deal with this situation if and when it arises.

What specific considerations should owners be aware of regarding Care, Custody & Control coverage when horses are temporarily stationed at international training facilities or competition venues?

It isn’t often that a horse travels alone, so if the insured’s groom is with the horse, the horse is under their care, custody, and control. In this case, the venue or facility wouldn’t be looking after the horse in question. If there is no groom and the horse is being cared for by the facility or venue employees, then we would advise an owner to find out what policy the venue has in place for this.

Of course, owners should also ensure that this – and any – type of cover is placed with a reputable insurer known for paying valid claims.

What anti-fraud measures are implemented when dealing with claims, especially in cases involving high-value horses?

We always perform sanction checks, but the most important aspects should have been dealt with when underwriting the risk so that in the event of a claim, the insured can be paid efficiently and quickly once the claim is agreed upon. Values are reviewed and agreed upon at inception via performance reviews and purchase information, among others.

What is the profile of your specialist claims inspectors for such a specialised subject as equine insurance?

Markel’s Wholesale Claims team are horse owners and experts, so they are uniquely positioned to adjust specialist equine claims. In the event we need additional specialist assistance, we have a network of vets across the globe to assist us with our underwriting and claims services.

With the rising costs of veterinary care globally, how are insurers adapting their medical coverage limits and emergency surgery provisions to meet the needs of international competitors?

There is an array of products available for medical costs and lifesaving surgery costs for international competitors, along with their ARM policy. Different limits are available upon request, and premiums are set accordingly.

The landscape of equine insurance represents a masterclass in international risk management across diverse global markets. While some local carriers may lack specialist equine knowledge, Markel International's expertise, channelled through reinsurance arrangements, provides crucial support for sophisticated markets worldwide. Under Redfern's guidance, Markel International adapts to meet the distinct challenges posed by cross-border movements, climate considerations, and varying regulatory frameworks across different territories.

As regions like the Middle East continue to strengthen their positions in global equestrian sports and breeding, the need for a nuanced understanding of both international insurance principles and regional specificities becomes increasingly vital. The future success of equine insurance in these dynamic markets will depend on maintaining this delicate balance between global expertise and local insight.