Quantitative Research Study for: Golf Australia Industry Insurance Survey 2007 Final Report for Tender Prepared by: Martin Hirons Golf Australia Contact: Alex McGillivray February 2008

|December 2007Golf Australia – National Insurance Survey – Quantitative Report2 OUTLINE Background Objectives Methodology and Sample Profile The Key Findings Section 1 – Player/Member Insurance Section 2 – Club/Business Insurance Section 3 – Other General Data Appendix One – The Questionnaire

|December 2007Golf Australia – National Insurance Survey – Quantitative Report3 Background Golf Australia (GA) is responsible for the administration and development of Amateur golf in Australia. Under the current charter and strategic direction of management, GA wishes to ensure that the game… Is inclusive and accessible to all Has relevant branding Grows in terms of participation Develops and implements an effective industry structure Promotes relevant core values Has financial stability. One of the key management issues for the industry continues to be Insurance coverage for club golfers. GA is currently conducting a strategic review of an industry wide insurance program that has the potential to deliver improved coverage - at a lower sustainable cost to Member States, Clubs and ultimately club members. The review process has involved a number of stages including the creation of a working group, a review of other insurance programs, a national club survey and wide consultation across the golf industry - as well as an evaluation of possible implementation methods. This document presents the key results from the club survey that was sent out to all member clubs in October In total, over 330 representatives from member clubs responded to the survey, representing a response rate of approximately 22% (from the 1531 member clubs). This sample size reflects a standard error of +/- 5.4%. Any queries about the data presented in this report can be directed to Alex McGillivray at GA.

|December 2007Golf Australia – National Insurance Survey – Quantitative Report4 Objectives The key objectives of this study involve the following… Overall… –To provide key data that provides an overview of the current insurance issues and practices of the club market in Australia –To inform the GA decision process in terms of an industry wide insurance product for both clubs and individual golfers and members –To assist in the tender process for the development of a ‘nationwide’ policy More specifically, the objectives involve… –Understanding the markets use and purchase of player insurance and public liability policies –Determine the level of public liability coverage – as well as player to player cover, injury cover and equipment cover. –Determine the penetration and use of respective insurance providers –Understand the range of premiums paid across the spectrum of clubs and Associations –In addition, data was collected around… –Club/Business Insurance practices and premiums –Club liability protection including directors and officers – as well as a range of other policies

|December 2007Golf Australia – National Insurance Survey – Quantitative Report5 Methodology and Sample Profile The data presented in this document was obtained via a mail out/ survey sent to all member clubs on October 24 th, 2007 In total, over 330 representatives from member clubs responded to the survey, representing a response rate of approximately 22% (from the 1531 member clubs). This sample size reflects a standard error of +/- 5.4%. Respondents were provided with both hard copy and formats to maximise response rates – there were no duplicate surveys received. The survey was designed by GA staff and the working panel. The sample profile is provided to highlight the club profile that responded to the survey. SAMPLE PROFILE - CLUBS N #% TOTAL Region/Area Metro Major Regional Other Regional No. of Members < Note: Sub-samples vary due to the construction of the survey template used by GA

|December 2007Golf Australia – National Insurance Survey – Quantitative Report6 Key Findings - Section 1: Player/Member Insurance

|December 2007Golf Australia – National Insurance Survey – Quantitative Report7 Player Insurance Policy RegionNo. Members TotalMetroRegionalOther Reg< %%%% Yes No Base:Total sample Q1Does your club purchase a Player Insurance policy or similar for members? Alarmingly, just over half of clubs claim to have a player insurance policy. There are distinct patterns that emerge – metropolitan clubs are most likely to have coverage and as member numbers increase, so does the propensity of a club to have player insurance coverage. i

|December 2007Golf Australia – National Insurance Survey – Quantitative Report8 Coverage of Player Public Liability RegionNo. Members TotalMetroRegionalOther Reg< %%%% Yes No Base:Have Player Insurance Policy Q3.Does the Personal player policy cover the players public liability? Overwhelmingly the majority of clubs that have a player policy also have public liability cover for players – major regional areas are relatively weak on coverage (81%), when compared to other segments. i

|December 2007Golf Australia – National Insurance Survey – Quantitative Report9 Level of Public Liability Coverage RegionNo. Members TotalMetroRegionalOther Reg< %%%% Less than $1.0m $1m-$1.9m $2m-$4.9m $5m-$9.9m $10m-$20m Over $20m Mean$13.7m$14.2m$13.3m$13.8m$13.1m$14.6m$13.4m $14.8 m Median$15.0m Base:Have Player Insurance Policy Q4If yes, what level of Public Liability under the player liability policy? The vast majority of clubs that have a player insurance policy are covered for public liability of between $10m-$20m for the player liability policy. The smaller clubs are at greatest risk – as are those outside the metro and major regional towns. The mean coverage varies between low $13m to mid $14m. i

|December 2007Golf Australia – National Insurance Survey – Quantitative Report10 Player to Player Liability RegionNo. Members TotalMetroRegionalOther Reg< %%%% Yes No Base:Have Player Insurance Policy Q5.Does the Public Liability include player to player liability, (e.g. if a player hits another player?) Player to player liability coverage is almost universal for those clubs with a player insurance policy – again smaller or more remote clubs are most at risk, although only marginally. i

|December 2007Golf Australia – National Insurance Survey – Quantitative Report11 Injury Coverage RegionNo. Members TotalMetroRegionalOther Reg< %%%% Yes No Base:Have Player Insurance Policy Q6.Does the Player policy cover injury? Clubs under 1000 members and those outside regional centres are least likely to have injury coverage as part of their player insurance policy (the smallest clubs with less than 250 members are most vulnerable here) – although injury coverage is almost universal. The 97% represents 53% of all clubs. i

|December 2007Golf Australia – National Insurance Survey – Quantitative Report12 Capital and Weekly Benefits RegionNo. Members TotalMetroRegionalOther Reg< %%%% Capital Benefits Below $50k $50k-$100k $100k plus Weekly Benefits Below $ $250-$ $500 plus Base:Have Player Insurance Policy Q7.What level of player injury cover does the policy provide? The majority of the benefits sit at the mid-points – that said, smaller clubs are far more likely than the larger clubs to have $100k plus in capital benefits – while weekly benefits are more centred on the mid range of $250-$500. i

|December 2007Golf Australia – National Insurance Survey – Quantitative Report13 Equipment Coverage RegionNo. Members TotalMetroRegionalOther Reg< %%%% Yes No Base:Have Player Insurance Policy Q8.Does you policy include equipment coverage i.e. golf clubs, buggies (non-motorised)? Members of smaller clubs and those outside metro or major regional clubs are at some risk in terms of equipment coverage – up to a third of these are not covered for equipment. At the total level this represents 45% of all clubs. i

|December 2007Golf Australia – National Insurance Survey – Quantitative Report14 Level of Equipment Coverage RegionNo. Members TotalMetroRegionalOther Reg< %%%% Below $ $ $2, $ $4, $4000 plus Base:Have Player Insurance Policy and Equipment coverage Q9.If so, what level is the equipment covered? The majority of equipment coverage is greater than $4000 – typically metro based clubs have higher levels of coverage. That said, over a quarter (28%) of all clubs have equipment coverage between $3000 and $4000. The mean figures are from high $3000s to approximately $4500. i

|December 2007Golf Australia – National Insurance Survey – Quantitative Report15 Level of Excess and Reach RegionNo. Members TotalMetroRegionalOther Reg< %%%% Excess Up to $ $ $500 plus Australia Wide Yes, Australia only Yes Aust and overseas No Base:Have Player Insurance Policy and Equipment coverage Q10.Is there an excess for any one equipment claim, if so how much (maximum occurrence)? Q11.Is the equipment coverage Australia-wide? The excess fees are variable, with the majority (54%) sitting between $101-$500. The majority of coverage is Australia wide. i

|December 2007Golf Australia – National Insurance Survey – Quantitative Report16 Premium Paid RegionNo. Members TotalMetroRegionalOther Reg< %%%% Under $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $25 plus Mean$12.96$13.16$12.74 $14.96$11.58$13.21$11.39 Median$12.50 Base:Have Player Insurance Policy and equipment coverage Q12.What is the premium paid per individual player for your policy? Premiums are spread across the pricing dynamic – the mean and medians are spread primarily between $11.50 and $13.00 – with members at smaller clubs paying a premium price for coverage. i

|December 2007Golf Australia – National Insurance Survey – Quantitative Report17 Key Findings - Section 2: Club/Business Insurance

|December 2007Golf Australia – National Insurance Survey – Quantitative Report18 Club/Business Insurance Coverage RegionNo. Members TotalMetroRegionalOther Reg< %%%% Yes No Base:Total sample Q13.Does your club have insurance? While the majority of clubs have club or business insurance coverage, the alarming fact is that only three quarters of Metro based clubs do so – and these clubs are typically smaller clubs that have under 250 members i

|December 2007Golf Australia – National Insurance Survey – Quantitative Report19 Policies Covered RegionNo. Members TotalMetroRegionalOther Reg< %%%% Director/Officer Association Employment Practices Professional Indemnity Public Liability Voluntary Workers Base:Have Club/Business insurance Q15a.Does your club insure against any of the following… There is wide variability in the type of business or club coverage taken out by these stakeholders. Public liability, voluntary workers and directors/officers being the most common options purchased. As expected larger clubs and those based in the Metro areas are more likely to have coverage across each policy type. i

|December 2007Golf Australia – National Insurance Survey – Quantitative Report20 Volunteer Coaches/Co-ordinators Coverage RegionNo. Members TotalMetroRegionalOther Reg< %%%% Yes, only on club premises Yes, including outside the club No Base:Have Club/Business insurance Q17.Are your volunteer coaches and/or coordinators covered under a club policy? Two-thirds of all clubs (66%) which have a club policy have some form of coach/co-ordinator coverage. Metro clubs and those with larger memberships are more likely to have coverage than others. i

|December 2007Golf Australia – National Insurance Survey – Quantitative Report21 Public Liability Coverage of Development Program Participants RegionNo. Members TotalMetroRegionalOther Reg< %%%% Yes, only at the club Yes, outside the club No Base:Have Club/Business insurance Q18.Does your club Public Liability policy provide cover for claims brought against participants of your development programs? Similar patterns exist here - with Metro clubs and those with more than 500 members more likely than other segments to have coverage of development program participants. i

|December 2007Golf Australia – National Insurance Survey – Quantitative Report22 Public Liability Coverage of Members RegionNo. Members TotalMetroRegionalOther Reg< %%%% Australia Wide On our course No Base:Have Club/Business insurance Q19. Does your club Public Liability policy provide cover for claims brought against your members? Eight in ten clubs (79%) are covered by their public liability policy for claims against members – although regional and ‘other’ clubs are less likely to be covered when compared to other segments i

|December 2007Golf Australia – National Insurance Survey – Quantitative Report23 Key Findings - Section 3: Other General Data

|December 2007Golf Australia – National Insurance Survey – Quantitative Report24 Club Incorporated RegionNo. Members TotalMetroRegionalOther Reg< %%%% Yes; incorporated Association Yes, Company Ltd No Base:Total sample Q22.Is your club/venue incorporated? Three quarters (73%) are incorporated with one in five (22%) a Company Limited by guarantee. Larger clubs and those in the Metro area are more likely to be a Company Limited by guarantee. i

|December 2007Golf Australia – National Insurance Survey – Quantitative Report25 Other Data There were a range of other questions relating to background data included in the survey. The detailed tables have been provided to GA and are available upon request. Just over half (51%) of all clubs make visitors ‘honorary members’ under their respective rules and constitutions Two thirds (67%) of clubs have non-member rounds covered under the clubs public liability policy A total of 57% of clubs own their course – with 43% owned by an ‘other’ interest Insurance payments are spread across the year – although 28% are paid in either June or July.