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Nature’s Call: The Rising Popularity of Outdoor Adventures
The outdoor recreation industry’s growth is steady and strong, driven by a pandemic-fueled surge in participation that has sustained itself beyond initial lockdown periods, according to insights from Philadelphia Insurance Companies (PHLY).
The pandemic fundamentally shifted how Americans engage with outdoor recreation, creating lasting changes in participation patterns. While COVID initially paused many activities, outdoor recreation was among the first to resume due to natural social distancing benefits.
This is a change in general behavior that does represent an opportunity for insurers and for the outfitters and guides they serve.
“COVID also sparked renewed interest in outdoor activities as people sought escape from being homebound. We saw a significant uptick in camping and similar activities,” said Gretchen Varenholt, Underwriting Supervisor II – Sports Recreation at PHLY.
This surge brought both opportunities and challenges, as many newcomers lacked outdoor experience, creating new risk considerations around inexperienced participants. The growth in participation has proven sustainable, though, with steady increases over the past decade as people seek alternatives to expensive vacations and intentionally disconnect from technology.
The accessibility factor plays a crucial role in sustained growth. Unlike costly travel requiring flights and hotels, outdoor activities offer lower barriers to entry – from free hiking to affordable local canoe rentals. This democratization of outdoor recreation helps insulate the industry from broader economic fluctuations.
The outdoor recreation sector faces multifaceted risks that extend beyond obvious hazards. Climate change presents significant operational challenges, particularly for snow-dependent activities where inconsistent snowfall can severely limit business operations for entire seasons.
Wildfire exposure has intensified for properties in remote areas typical of outdoor operations. Insurance providers now scrutinize fire mitigation practices, proximity to fire stations, on-site hydrants, and alternative water sources more carefully than in previous years.
Although Varenholt said property owners in this space are well educated and proactive about risk mitigation methods, such as clearing brush near buildings and installing less flammable roofing materials, in the case of wildfire risk.
Gretchen Varenholt, Underwriting Supervisor II – Sports Recreation, Philadelphia Insurance Companies
“We have some resort lodges, hunting lodges, or bed and breakfasts that fall under the scope of what we look at under this product,” Varenholt said.
“Some hunting preserves will have ancillary buildings, and rod and gun clubs will have their clubhouses and various buildings for that. So, we do see property ownership a decent amount.”
“With a lot of the outdoor activities, they’re going to be in more remote areas, so the wildfire hazard is higher. We do have the capacity to take on some more of that high-risk property in wildfire-prone areas. But in recent years, we have been steadily increasing our underwriting knowledge and focus in these areas given that wildfire frequency and severity are much higher now than in the past,” she said.
Weather patterns have also shifted unpredictably. Wind and hail damage now affects regions previously untroubled by such events, while seasonal properties face unique vulnerabilities when left unattended for extended periods.
“We’re seeing different storms in different areas – like Texas and other areas in the south, where we’re experiencing freeze issues, wind, and hail a lot more than before. Some of these risks we’re now having to consider countrywide, when before they were only issues in certain regions,” she added.
Property risk mitigation strategies include comprehensive seasonal property preparation, regular caretaker inspections, and technology solutions like moisture detection devices.
Some liability loss exposures can come from non-obvious sources. In axe throwing venues, the primary risk isn’t injury from axes but liquor liability when facilities sell alcohol and patrons potentially drive after drinking. Similarly, when rafting or canoeing, adults will typically ensure their children use provided safety equipment like life vests for any boats and helmets for white water rafting but will often forego basic safety equipment for themselves. This increases the risk of drowning incidents, head injuries and other serious consequences.
Risk mitigation strategies for liability include mandatory safety equipment regardless of participant age or experience levels, tight control over liquor consumption and policies on what to do if someone appears drunk, and general heightened awareness of the premise and potential hazards.
Specialized Expertise Drives Coverage Solutions
PHLY leverages deep industry knowledge through team members who personally participate in covered activities. The sports and recreation team includes professionals with decades of underwriting experience who engage in activities ranging from horseback riding and fly fishing to snowmobiling and paddleboarding.
“Pretty much everyone on our team is involved in some type of outdoor activity that we cover,” Varenholt noted. “We have some people who are into hunting, who are part of shooting clubs, who snowmobile, who ski. A lot of us are very involved in certain sports. Whenever something comes up on one of those accounts, we’ll say, ‘Let’s ask so and so because we know they do that on the weekend.'”
“If it’s something that we’re not specialized in, we get the expert on our team who actually does this activity to get their opinion on it. Being able to tap into that from both an insurance standpoint and a personal involvement in the activity is helpful.”
The company provides comprehensive coverage, including general liability, property, liquor liability, and selective auto coverage. While passenger transport remains challenging due to high injury potential with multiple occupants, the insurer carefully underwrites such exposures when it is comfortable with the risk.
Technology integration enhances risk management through devices like PHLYSENSE for water leak detection and PHLYTRAC for vehicle monitoring. These tools benefit both insurers and policyholders by preventing losses or reducing severity while providing early warning systems for remote properties.
The company’s risk management team offers localized expertise on region-specific challenges like wildfire mitigation, while claims teams maintain responsiveness to the unique needs of outdoor recreation businesses operating in remote locations with seasonal constraints.
“Our risk management team has people locally who are up to date on the issues that we see in specific areas, like how to mitigate brush fires. When they go out and look at properties, they’re able to give recommendations and help ensure safety.”
To learn more, please visit: https://www.phly.com/Home/Index.aspx.
This article was produced by the R&I Brand Studio, a unit of the advertising department of Risk & Insurance, in collaboration with Philadelphia Insurance Companies. The editorial staff of Risk & Insurance had no role in its preparation.
