Saturday, February 16, 2013

I wonder how insurance companies calculate the odds of a career ending injury?

Yuck. But he's going to be fine.
The top freshman in college basketball went down with an ACL tear this past week.  He's a Kentucky Wildcat named Nerlens Noel, and he was projected to likely be the top pick in this June's NBA draft.  While ACL injuries seem to be happening at an alarming rate recently, this story also has another interesting angle.

Noel has a 10 million dollar insurance policy in place in case he suffers a career ending injury.  Allegedly it cost him somewhere in the rage of $40,000-$60,000 to take out.  If this is true, it means Lloyd's of London (the insurance company he used) must have calculated the odds of Noel suffering such an injury to be no better than roughly 200-1.  They actually probably figure them to be much worse than that, considering that they are in fact a business intended to make money, not just break even.  Regardless, it definitely helps support my argument that career ending injuries are becoming a thing of the past.  As gruesome as Noel's knee looks in the picture, he is expected to make a full recovery.


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